Legislature(2001 - 2002)
2001-05-04 Senate Journal
Full Journal pdf2001-05-04 Senate Journal Page 1507 SB 218 SENATE BILL NO. 218 "An Act relating to international airports revenue bonds and to the spending plan for the International Airports Construction Fund; and providing for an effective date" was read the second time. Senator Cowdery, Chair, moved and asked unanimous consent for the adoption of the Transportation Committee Substitute offered on page 1432. Without objection, CS FOR SENATE BILL NO. 218(TRA) was adopted and read the second time. Senator Pearce offered Amendment No. 1 : Page 1, line 2, following "Fund;": Insert "relating to customer facility charges to fund facilities in airports to be constructed without using international airport revenue bonds;" 2001-05-04 Senate Journal Page 1508 Page 1, following line 3: Insert a new bill section to read: "* Section 1. AS 02.15.090(a) is amended to read: (a) In operating an airport or air navigation facility owned or controlled by the state, the department may enter into contracts, leases, and other arrangements covering periods not exceeding 55 years with a person, municipality, or the United States, granting the privilege of using or improving an airport or air navigation facility or a portion of it or space in it for commercial, governmental, or other public purposes, including private plane tie down, or conferring the privilege of supplying goods, commodities, services, or facilities at an airport or air navigation facility. The department may establish the terms and conditions and fix the charges, rentals, and fees for the privileges or services that are reasonable and uniform for the same class of privilege or service. Charges, rentals, or fees authorized by this subsection may be fixed for the international airports by order of the commissioner or by negotiated or competitively offered contract. However, for the privilege of occupying or using a state-owned facility on an airport, which facility is or will be acquired, constructed, equipped, installed or improved with the proceeds of indebtedness, the payment of which is secured solely by revenues from customer facility charges, the department shall require occupants or users of all or a portion of the facility to pay to the department, or shall require persons under contract to occupy or use all or a portion of the existing or proposed facility to charge their customers, a uniform customer facility charge stipulated by the department in an amount sufficient to pay the principal of, interest on, and any other cost of debt service on the indebtedness. Notwithstanding AS 37.10.050(a), the fixing of charges, rentals, or fees as permitted under this subsection is not subject to the adoption of regulation provisions of AS 44.62 (Administrative Procedure Act). The terms, conditions, charges, rentals, and fees shall be established with due regard to the property and improvements used and the expense of operation to the state. However, use of state land and buildings by the Alaska Wing, Civil Air Patrol and its squadrons shall be permitted without rental charges. If the department permits space in state-owned or state-controlled airports to be used as lounges for members of the United States armed forces, the Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force, and if the lounges are operated by persons exempt from taxation under 26 U.S.C. 2001-05-04 Senate Journal Page 1509 501(c)(3) (Internal Revenue Code), rent may not be charged for the use of the space. The department shall provide for public notice and an opportunity to comment before a charge, rental, or fee is fixed by order of the commissioner as permitted under this subsection. The public may not be deprived of its rightful, equal, and uniform use of the airport, air navigation facility, or a portion of them." Page 1, line 4: Delete "* Section 1. " Insert "* Sec. 2." Renumber the following bill sections accordingly. Page 1, line 13, following "purpose": Insert ", excepting only proceeds of any customer facility charge set by the commissioner of transportation and public facilities under AS 02.15.090" Page 2, following line 20: Insert new bill sections to read: "* Sec. 4. AS 37.15.430(a) is amended to read: (a) There is established an enterprise fund known as the "International Airports Revenue Fund," into which shall be paid all revenue, fees, charges, and rentals derived by the state from the ownership, lease, use, and operation of the airports and all of the facilities and improvements of them and facilities and improvements used in connection with them, excepting only proceeds of any customer facility charge set by the commissioner of transportation and public facilities under AS 02.15.090. The revenue, charges, fees, and rentals may not include the proceeds of any state tax or license. The money in the revenue fund may only be used for the purpose of (1) paying or securing the payment of the principal of and interest on the bonds and of and on any other revenue bonds issued by authorization of the legislature to provide money to acquire, equip, construct, and install additions and improvements to, and extensions of and facilities for, the airports, and to be payable out of the revenue fund; (2) paying the normal and necessary costs of maintaining and operating the airports and all of the improvements and facilities of them; 2001-05-04 Senate Journal Page 1510 (3) paying the costs of renewals, replacements, and extraordinary repairs to the airports and all of the improvements and facilities of them; (4) redeeming before their fixed maturities any and all revenue bonds issued for the purposes of the airports; (5) providing money to acquire, construct and install necessary additions and improvements to and extensions of and facilities for the airports and all of their facilities; and (6) providing money to pay any and all other costs relating to the ownership, use, and operation of the airports. * Sec. 5. AS 37.15.430 is amended by adding a new subsection to read: (c) For proceeds of a customer facility charge set by the commissioner of transportation and public facilities under AS 02.15.090 but required to be charged to customers by occupants or users of a facility acquired, constructed, equipped, installed, or improved with the proceeds of indebtedness incurred by a person other than the state to acquire, construct, equip, install, or improve the facility for state ownership, (1) the Department of Transportation and Public Facilities shall by regulation or contract require that the proceeds of the customer facility charge be remitted directly to a bond trustee designated to receive such proceeds and to pay the principal of interest on, and any other cost of debt services on the indebtedness; and (2) such proceeds shall not be considered a revenue of the state." Renumber the following bill section accordingly. Senator Pearce moved for the adoption of Amendment No. 1. Objections were heard. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: 2001-05-04 Senate Journal Page 1511 CSSB 218(TRA) Second Reading Amendment No. 1 YEAS: 19 NAYS: 1 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Cowdery, Davis, Donley, Ellis, Elton, Green, Halford, Hoffman, Leman, Lincoln, Olson, Pearce, Phillips, Taylor, Therriault, Torgerson, Ward, Wilken Nays: Kelly and so, Amendment No. 1 was adopted. Senator Cowdery offered Title Amendment No. 2: Page 1, line 1, following "and": Delete "to" Insert "requiring that" Page 1, line 2, following "Fund": Insert "include information about the amounts spent during the previous fiscal year for cost overruns on certain projects and the identification of time delays on certain projects" Senator Cowdery moved for the adoption of Title Amendment No. 2. Without objection, Title Amendment No. 2 was adopted. Senator Leman moved and asked unanimous consent that the bill be considered engrossed, advanced to third reading and placed on final passage. Senator Ellis objected. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: 2001-05-04 Senate Journal Page 1512 CSSB 218(TRA) am Advance from Second to Third Reading? YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Cowdery, Donley, Green, Halford, Kelly, Leman, Pearce, Phillips, Taylor, Therriault, Torgerson, Ward, Wilken Nays: Davis, Ellis, Elton, Hoffman, Lincoln, Olson and so, the bill failed to advance to third reading. CS FOR SENATE BILL NO. 218(TRA) am will be on the May 5 calendar.