HB 115: "An Act relating to charges paid or collected by users or occupants of an airport facility owned or controlled by the state."
00 HOUSE BILL NO. 115 01 "An Act relating to charges paid or collected by users or occupants of an airport facility 02 owned or controlled by the state." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 02.15.090(a) is amended to read: 05 (a) In operating an airport or air navigation facility owned or controlled by the 06 state, the department may enter into contracts, leases, and other arrangements covering 07 periods not exceeding 55 years with a person, municipality, or the United States, 08 granting the privilege of using or improving an airport or air navigation facility or a 09 portion of it or space in it for commercial, governmental, or other public purposes, 10 including private plane tie down, or conferring the privilege of supplying goods, 11 commodities, services, or facilities at an airport or air navigation facility. The 12 department may establish the terms and conditions and fix the charges, rentals, and 13 fees for the privileges or services that are reasonable and uniform for the same class of 14 privilege or service. Charges, rentals, or fees authorized by this subsection may be
01 fixed for the international airports by order of the commissioner or by negotiated or 02 competitively offered contract. [HOWEVER, FOR THE PRIVILEGE OF 03 OCCUPYING OR USING A STATE-OWNED FACILITY ON AN AIRPORT, 04 WHICH FACILITY IS OR WILL BE ACQUIRED, CONSTRUCTED, EQUIPPED, 05 INSTALLED, OR IMPROVED WITH THE PROCEEDS OF INDEBTEDNESS, 06 THE PAYMENT OF WHICH IS SECURED SOLELY BY REVENUES FROM 07 CUSTOMER FACILITY CHARGES, THE DEPARTMENT SHALL REQUIRE 08 OCCUPANTS OR USERS OF ALL OR A PORTION OF THE FACILITY TO PAY 09 TO THE DEPARTMENT, OR SHALL REQUIRE PERSONS UNDER CONTRACT 10 TO OCCUPY OR USE ALL OR A PORTION OF THE EXISTING OR PROPOSED 11 FACILITY TO CHARGE THEIR CUSTOMERS, A UNIFORM CUSTOMER 12 FACILITY CHARGE STIPULATED BY THE DEPARTMENT IN AN AMOUNT 13 SUFFICIENT TO PAY THE PRINCIPAL OF, INTEREST ON, AND ANY OTHER 14 COST OF DEBT SERVICE ON THE INDEBTEDNESS.] Notwithstanding 15 AS 37.10.050(a), the fixing of charges, rentals, or fees as permitted under this 16 subsection is not subject to the adoption of regulation provisions of AS 44.62 17 (Administrative Procedure Act). The terms, conditions, charges, rentals, and fees shall 18 be established with due regard to the property and improvements used and the expense 19 of operation to the state. However, use of state land and buildings by the Alaska 20 Wing, Civil Air Patrol and its squadrons shall be permitted without rental charges. If 21 the department permits space in state-owned or state-controlled airports to be used as 22 lounges for members of the United States armed forces, the Alaska National Guard, 23 the Alaska Naval Militia, or the Alaska State Defense Force, and if the lounges are 24 operated by persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 25 Revenue Code), rent may not be charged for the use of the space. The department 26 shall provide for public notice and an opportunity to comment before a charge, rental, 27 or fee is fixed by order of the commissioner as permitted under this subsection. The 28 public may not be deprived of its rightful, equal, and uniform use of the airport, air 29 navigation facility, or a portion of them. 30 * Sec. 2. AS 02.15.090 is amended by adding new subsections to read: 31 (h) For the privilege of occupying or using a state-owned facility on an airport,
01 which facility is or will be acquired, constructed, equipped, installed, or improved 02 with the proceeds of indebtedness, the payment of which is secured solely by proceeds 03 from customer facility charges, the department shall require occupants or users of all 04 or a portion of the facility to collect from their customers and remit to (1) the 05 department if the state on behalf of the department incurred the indebtedness; or (2) a 06 trustee or another third party if the state on behalf of the department did not incur the 07 indebtedness, a uniform customer facility charge. The commissioner shall set the 08 customer facility charge at an amount sufficient to pay the principal of, interest on, 09 and any other cost of debt service on the indebtedness, including the maintenance of a 10 debt service reserve fund and amounts to satisfy any coverage requirement in the 11 indebtedness documentation. The commissioner shall periodically adjust the amount 12 of the customer facility charge to reflect changes in the amounts necessary to pay the 13 principal of, interest on, and any other cost of debt service on the indebtedness and 14 changes in the number of occupants, users, or customers of the facility. If the 15 proceeds of the customer facility charge are remitted to a trustee or another third party 16 to pay the principal of, interest on, and any other cost of debt service on an 17 indebtedness not incurred by the state on behalf of the department, the proceeds of the 18 customer facility charge are not revenue of the state for the purpose of securing any 19 other indebtedness. The commissioner may set charges authorized by this subsection 20 for the international airports by order or by negotiated or competitively offered 21 contract. The department shall provide for public notice and an opportunity to 22 comment before a charge is set by order of the commissioner under this subsection. 23 Notwithstanding AS 37.10.050(a), the setting of charges under this subsection is not 24 subject to the adoption of regulation provisions of AS 44.62 (Administrative 25 Procedure Act). 26 (i) In addition to requiring collection of a customer facility charge to be 27 applied as described in (h) of this section, the department may require occupants or 28 users of all or a portion of a state-owned facility on an airport, which facility is or will 29 be acquired, constructed, equipped, installed, or improved with the proceeds of 30 indebtedness, the payment of which is secured solely by proceeds of a customer 31 facility charge, to collect from their customers and remit to (1) the department if the
01 state on behalf of the department incurred the indebtedness; or (2) a trustee or another 02 third party if the state on behalf of the department did not incur the indebtedness, a 03 uniform customer facility maintenance charge. The commissioner shall set the 04 customer facility maintenance charge at an amount sufficient to, wholly or in part, 05 fund and maintain any repair and replacement fund established in connection with the 06 facility, pay costs, fees, and expenses associated with the operation and maintenance 07 of the facility including costs of insurance for the facility, pay costs related to the 08 design acquisition, construction, and equipping of the facility not covered by the 09 indebtedness, and pay any other costs, fees, and expenses that may be required to 10 operate the facility. The commissioner shall periodically adjust the amount of the 11 customer facility maintenance charge to reflect changes in amounts necessary to fund 12 and maintain any repair and replacement fund established in connection with the 13 facility, to pay costs, fees, and expenses associated with the operation and 14 maintenance of the facility including costs of insurance for the facility, to pay costs 15 related to the design acquisition, construction, and equipping of the facility not 16 covered by the indebtedness, and to pay any other costs, fees, and expenses that may 17 be required to operate the facility and to reflect changes in the number of occupants, 18 users, or customers of the facility. If the proceeds of the customer facility 19 maintenance charge are remitted to a trustee or another third party to pay the costs set 20 out in this subsection with respect to a facility funded by indebtedness not incurred by 21 the state on behalf of the department, the proceeds of the customer facility 22 maintenance charge are not revenue of the state for the purpose of securing any other 23 indebtedness. The commissioner may set charges authorized by this subsection for the 24 international airports by order or by negotiated or competitively offered contract. The 25 department shall provide for public notice and an opportunity to comment before a 26 charge is set by order of the commissioner under this subsection. Notwithstanding 27 AS 37.10.050(a), the setting of charges under this subsection is not subject to the 28 adoption of regulation provisions of AS 44.62 (Administrative Procedure Act). 29 * Sec. 3. AS 37.15.410 is amended to read: 30 Sec. 37.15.410. Bond authorization. For the purpose of providing part or all 31 of the money to be used, with or without any grants or other money that may become
01 available, the issuance and sale of revenue bonds of the state in a total principal sum 02 not to exceed $524,500,000 is authorized to acquire, equip, construct, and install the 03 additions, improvements, extensions, and facilities authorized in AS 37.15.510. The 04 principal of and interest on these bonds shall be paid out of and secured by the gross 05 revenue derived by the state from the ownership, lease, use, and operation of the 06 airports, and of all the facilities of them, and out of any other money that may be 07 appropriated for the purpose, excepting only proceeds of any customer facility charge 08 and any customer facility maintenance charge set by the commissioner of 09 transportation and public facilities under AS 02.15.090. 10 * Sec. 4. AS 37.15.430(a) is amended to read: 11 (a) There is established an enterprise fund known as the "International 12 Airports Revenue Fund," into which shall be paid all revenue, fees, charges, and 13 rentals derived by the state from the ownership, lease, use, and operation of the 14 airports and all of the facilities and improvements of them and facilities and 15 improvements used in connection with them, excepting only proceeds of any customer 16 facility charge and any customer facility maintenance charge set by the 17 commissioner of transportation and public facilities under AS 02.15.090. The revenue, 18 charges, fees, and rentals may not include the proceeds of any state tax or license. The 19 money in the revenue fund may only be used for the purpose of 20 (1) paying or securing the payment of the principal of and interest on 21 the bonds and of and on any other revenue bonds issued by authorization of the 22 legislature to provide money to acquire, equip, construct, and install additions and 23 improvements to, and extensions of and facilities for, the airports, and to be payable 24 out of the revenue fund; 25 (2) paying the normal and necessary costs of maintaining and 26 operating the airports and all of the improvements and facilities of them; 27 (3) paying the costs of renewals, replacements, and extraordinary 28 repairs to the airports and all of the improvements and facilities of them; 29 (4) redeeming before their fixed maturities any and all revenue bonds 30 issued for the purposes of the airports; 31 (5) providing money to acquire, construct, and install necessary
01 additions and improvements to and extensions of and facilities for the airports and all 02 of their facilities; and 03 (6) providing money to pay any and all other costs relating to the 04 ownership, use, and operation of the airports. 05 * Sec. 5. AS 37.15.430(c) is amended to read: 06 (c) For proceeds of a customer facility charge or customer facility 07 maintenance charge set by the commissioner of transportation and public facilities 08 under AS 02.15.090 but required to be collected from [CHARGED TO] customers by 09 occupants or users of a facility acquired, constructed, equipped, installed, or improved 10 with the proceeds of indebtedness incurred by a person other than the state on behalf 11 of the Department of Transportation and Public Facilities to acquire, construct, 12 equip, install, or improve the facility for use by the occupants or users of the state- 13 owned facility [STATE OWNERSHIP], 14 (1) the Department of Transportation and Public Facilities shall by 15 regulation or contract require that the proceeds of 16 (A) the customer facility charge be remitted directly to a 17 [BOND] trustee or another third party designated to receive the [SUCH] 18 proceeds and to pay the principal of, [OR] interest on, and any other cost of 19 debt service [SERVICES] on [,] the indebtedness described in 20 AS 02.15.090(h); and 21 (B) the customer facility maintenance charge be remitted 22 directly to a trustee or another third party designated to receive the 23 proceeds and to pay some or all of the costs, fees, and expenses described 24 in AS 02.15.090(i); and 25 (2) the [SUCH] proceeds are [MAY] not [BE CONSIDERED A] 26 revenue of the state securing any indebtedness other than the indebtedness 27 described in AS 02.15.090(h) or (i).