SB 227: "An Act relating to the airports in Anchorage, Fairbanks, and Cold Bay, and establishing the Alaska Airport Authority; and providing for an effective date."
00 SENATE BILL NO. 227 01 "An Act relating to the airports in Anchorage, Fairbanks, and Cold Bay, and 02 establishing the Alaska Airport Authority; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS AND PURPOSE. (a) The Alaska State Legislature finds that the state- 07 owned and state-operated international airports at Anchorage and Fairbanks are critical air 08 transportation links between the Orient, Europe, and North America, are the major points of 09 access to Alaska for international and interstate air travelers, and are major hubs for the 10 shipment of cargo throughout the Pacific Rim and the Northern Hemisphere. In order to 11 protect and maintain the viability and competitive position of the Anchorage and Fairbanks 12 international airports, it is in the best interest of the state to vest management of these airports 13 in an independent authority that can provide effective marketing of the airports; efficient, 14 responsive, and integrated management of the airports; and competitive services and facilities
01 to users of the airports. 02 (b) The purpose of this Act is to establish an authority for the operation, management, 03 planning, and construction of facilities for the state-owned and state-operated international 04 airports at Anchorage and Fairbanks and the state-owned and state-operated airport at Cold 05 Bay. 06 * Sec. 2. AS 02 is amended by adding a new chapter to read: 07 Chapter 45. Alaska Airport Authority. 08 Article 1. Creation and Organization. 09 Sec. 02.45.010. Alaska Airport Authority. (a) The Alaska Airport 10 Authority is established as a public corporation of the state. The corporation is an 11 instrumentality of the state in the Department of Transportation and Public Facilities 12 but has a legal existence independent of and separate from the state and has continuing 13 succession until its existence is terminated by law. 14 (b) The authority is the exclusive state agency responsible for the operation, 15 management, planning, marketing, construction, and maintenance of facilities for the 16 state-owned and state-operated international airports located at Anchorage and 17 Fairbanks and for the state-owned and state-operated airport at Cold Bay. 18 (c) The powers of the authority are vested in the board of directors of the 19 authority. 20 Sec. 02.45.020. Board of directors. (a) The board of directors of the 21 authority consists of seven voting members appointed by the governor in accordance 22 with this section: 23 (1) two members who are residents of the Municipality of Anchorage; 24 (2) two members who are residents of the Fairbanks North Star 25 Borough; 26 (3) one member who is a resident of the Aleutians East Borough; and 27 (4) two members, at least one of whom is a resident of the state. 28 (b) The appointed members of the board described under (a) of this section 29 shall have appropriate and relevant experience in the management or operation of 30 airports or of aviation or related business enterprises, except that 31 (1) at least one member shall be a representative of a labor
01 organization that represents employees of the authority; 02 (2) at least one member shall have experience in the management of 03 scheduled airline service; 04 (3) at least one member shall have experience in general aviation in the 05 state; and 06 (4) at least one member shall have airport management experience at 07 an airport serving a community with a population of at least 60,000 persons. 08 (c) The commissioner of transportation and public facilities is a nonvoting, ex 09 officio member of the board. The commissioner may designate a person to serve on 10 the board in the commissioner's absence. 11 (d) The appointed members of the board serve for staggered terms of four 12 years. The terms of the appointed members begin on January 1. 13 (e) The appointed members of the board shall comply with the requirements of 14 AS 39.50 (public official financial disclosure). 15 (f) The appointed members of the board may neither be employed by the state, 16 including the University of Alaska, nor hold an elected state or municipal office. 17 Sec. 02.45.030. Removal of members. The governor may remove an 18 appointed member of the board for cause, including incompetence, neglect of duty, or 19 misconduct in office. Before a member is removed for cause, the member shall be 20 given a copy of the charges and afforded an opportunity to publicly present a defense 21 in person or by counsel upon not less than 10 days' notice. If a member is removed for 22 cause, the governor shall file with the lieutenant governor a complete statement of all 23 charges made against the member and the governor's findings based on the charges, 24 together with a complete record of the proceedings. The governor may suspend a 25 member of the board pending a final action under this section. 26 Sec. 02.45.040. Compensation and expenses. (a) A member of the board, 27 other than the commissioner and the commissioner's designee, is entitled to 28 compensation not to exceed $400 for each day the member is engaged in the actual 29 performance of duties as a member of the board for a maximum of 60 days in a 30 calendar year. The board may provide by rule for compensation for partial days 31 during which an appointed member is engaged in actual performance of duties as a
01 member of the board. 02 (b) In addition to compensation under (a) of this section, a member of the 03 board, other than the commissioner and the commissioner's designee, is entitled to per 04 diem and travel expenses authorized by law for state boards and commissions under 05 AS 39.20.180. 06 Sec. 02.45.050. Meetings. (a) The board shall hold at least four regular 07 meetings each year. The site of the regular meetings shall rotate between Anchorage 08 and Fairbanks. 09 (b) The board may hold special meetings at the call of the chair or at the 10 request of three members of the board. 11 Sec. 02.45.060. Officers and quorum. (a) The board shall elect a chair and a 12 vice-chair from among its members. A member of the board may not serve as chair 13 for two consecutive terms. The chairmanship of the board shall rotate among 14 members of the board appointed under AS 02.45.020(a)(1) - (3). The chair and vice- 15 chair serve for terms of two years. 16 (b) The board shall elect a secretary, who need not be a member. The 17 secretary serves at the pleasure of the board. 18 (c) Four members of the board constitute a quorum. Action may be taken and 19 motions and resolutions adopted by the board at a meeting by the affirmative vote of at 20 least four members, of which at least one member must be a member appointed under 21 AS 02.45.020(a)(1) and at least one member must be a member appointed under 22 AS 02.45.020(a)(2). Members may not vote by proxy. A vacancy in the membership 23 of the board does not impair the right of a quorum to exercise all the powers and 24 perform all the duties of the board. 25 (d) Members may participate in meetings of the board by electronic means. 26 Sec. 02.45.070. Staff. (a) The board shall employ a manager for the Ted 27 Stevens Anchorage International Airport and a manager for the Fairbanks 28 International Airport. The board may employ a manager for the Cold Bay Airport. 29 Airport managers shall be selected on the basis of education, experience, training, and 30 expertise in management of airports. Airport managers serve at the pleasure of the 31 board. Between meetings of the board, the airport managers shall report to the chair of
01 the board. 02 (b) The board shall employ officers and employees as necessary for the 03 efficient operation of the airports. 04 (c) The board may employ executive, administrative, fiscal, and legal officers 05 and employees as the board considers necessary for the efficient management of the 06 authority. The board shall seek to minimize unnecessary duplication of staff and 07 functions at airports operated by the authority. 08 Sec. 02.45.080. Rules and emergency rules. (a) The board shall adopt rules 09 to carry out its functions and the purposes of this chapter, including rules to safeguard 10 property owned by the authority and to protect employees and persons using the 11 authority's property or services. At least 15 days before the adoption of a rule, the 12 board shall give public notice of the proposed action by publishing a notice in at least 13 two newspapers of general circulation in the state and by mailing a copy of the notice 14 to each person who has requested notice of proposed changes to its rules. The notice 15 must state the time, place, and nature of the proceedings and must contain a summary 16 of the subject of the proposed rule. 17 (b) On the date and at the time and place designated in the notice required 18 under (a) of this section, the board shall provide each interested person an opportunity 19 to present statements in writing concerning the proposed rule and shall give members 20 of the public an opportunity to present oral statements for a minimum period of at least 21 one hour. 22 (c) The board shall consider all relevant matters presented to it before 23 adopting a rule. The board may take action on a rule that varies in content from the 24 summary provided with the notice of the proposed rule if the summary reflected the 25 subject of the rule in a way that provided reasonable notice to the public about whether 26 the authority's action on that subject could affect the public's interest. 27 (d) The board may adopt a rule on an emergency basis only when necessary 28 for the orderly operation of the authority's facilities or programs. The requirements of 29 (a) - (c) of this section do not apply to the adoption of an emergency rule under this 30 subsection. However, within 10 days after the adoption of an emergency rule, the 31 authority shall give notice of its action that substantially complies with the notice
01 requirements of this section. A rule adopted under this subsection remains in effect 02 for not more than 120 days. To prevent an emergency rule from lapsing, the board 03 may adopt the same rule under (a) - (c) of this section before the end of the 120-day 04 period. 05 (e) Failure to mail a notice to a person under (a) or (d) of this section does not 06 invalidate an action taken by the board. 07 (f) An interested person may challenge a rule adopted by the board by 08 bringing an action in the superior court. In addition to other grounds, a court may 09 declare a rule invalid 10 (1) for substantial failure by the authority to comply with this section; 11 or 12 (2) if the rule was adopted under (d) of this section, upon the ground 13 that the emergency rule was not necessary for the orderly operation of the authority's 14 facilities or programs. 15 Article 2. Powers and Duties. 16 Sec. 02.45.100. Powers and duties of authority. (a) In addition to other 17 powers granted in this chapter, the authority may 18 (1) sue and be sued; 19 (2) adopt and alter an official seal; 20 (3) maintain an office in the state; 21 (4) acquire, hold, use, and dispose of its money, subject to 22 appropriation by the legislature; 23 (5) acquire, hold, use, lease, rent, construct, and dispose of property for 24 its purposes; 25 (6) issue revenue bonds in the amount authorized by law; and 26 (7) do all acts necessary to carry out this chapter that are not expressly 27 prohibited by law. 28 (b) The authority shall 29 (1) operate, manage, plan, improve, market, construct, and maintain 30 the facilities of the state-owned and state-operated international airports located at 31 Anchorage and Fairbanks and of the state-owned and state-operated airport at Cold
01 Bay; and 02 (2) adopt and enforce 03 (A) bylaws of the authority establishing procedures consistent 04 with AS 02.45.080 for the adoption of rules and emergency rules; 05 (B) rules for the conduct of its business and for the use of its 06 services and facilities; 07 (C) personnel rules necessary to establish a system of personnel 08 administration substantially equivalent to the state personnel rules adopted 09 under AS 39. 10 Sec. 02.45.110. Public nature of authority activities. The planning, 11 construction, improvement, maintenance, and operation of an airport, whether by the 12 authority separately or jointly with another state agency, municipality, or person, and 13 the exercise of other powers granted to the authority are public and governmental 14 functions exercised for a public purpose and matters of public necessity. Land and 15 other property and privileges acquired and used by or on behalf of the authority for the 16 purposes enumerated in this chapter are acquired and used for public and 17 governmental purposes and as a matter of public necessity. 18 Sec. 02.45.120. Acquisition of land and easements. The authority, as part of 19 the cost of constructing, maintaining, or improving airport facilities, may acquire by 20 purchase, gift, grant, exchange, or eminent domain land in fee simple or easements 21 that the authority considers necessary for present or future public use, either temporary 22 or permanent, including easements in airport hazards or land outside the boundaries of 23 an airport, necessary to permit the removal, elimination, and obstruction marking or 24 obstruction lighting of airport hazards or to prevent the establishment of airport 25 hazards. By the same means, the authority may obtain material, including clay, 26 gravel, sand, or rock, or the land necessary to obtain the material. The authority may 27 acquire the land or material notwithstanding the fact that title to the land or material is 28 vested in the state or a department, agency, commission, or institution of the state. 29 Sec. 02.45.130. Authority to acquire property for the purpose of 30 exchange. When the authority declares that it is in the best public interest of the state 31 to do so, the authority may acquire by purchase, gift, grant, exchange, or eminent
01 domain privately or publicly owned land or an interest in land for the purpose of 02 exchanging the land or interest in land for privately or publicly owned land or an 03 interest in land that the authority is authorized by law to acquire. 04 Sec. 02.45.140. Eminent domain. (a) The authority may exercise the power 05 of eminent domain under AS 09.55.240 - 09.55.460 to acquire land for airport 06 purposes consistent with this chapter. Notwithstanding AS 09.55.250, the authority 07 may acquire a fee simple title whenever, in the judgment of the authority, ownership 08 of a fee simple title is necessary to carry out the purposes of this chapter. 09 (b) The authority may file a declaration of taking in the manner provided for 10 the state under AS 09.55.420. 11 (c) The exercise of the power of eminent domain by the authority requires the 12 prior approval of the governor. 13 Sec. 02.45.150. Indemnification. (a) If the person acted in good faith on 14 behalf of the authority and within the scope of the person's official duties or powers, 15 the authority may defend and indemnify a current or former member of the board, 16 employee, or agent of the authority against all costs, expenses, judgments, and 17 liabilities, including attorney fees, incurred by or imposed upon that person in 18 connection with a civil or criminal action in which the person is involved by affiliation 19 with the authority. 20 (b) The authority may purchase insurance to protect and hold personally 21 harmless its employees, agents, and board members from an action, claim, or 22 proceeding arising out of the performance, purported performance, or failure of 23 performance, in good faith, of duties for, or employment with, the authority and to 24 hold them harmless from expenses connected with the defense, settlement, or 25 monetary judgments from that action, claim, or proceeding. The purchase of 26 insurance is discretionary with the board, and insurance is not considered to be 27 compensation to the insured person. 28 Sec. 02.45.160. Insurance. Except as provided in AS 02.45.150(b), the 29 authority shall protect its assets, services, and employees by purchasing insurance or 30 providing for certain self-insurance retentions. The authority shall also maintain 31 casualty, property, and other insurance in amounts reasonably calculated to cover
01 potential claims against the authority or state for bodily injury, death, or disability and 02 property damage that may arise from or be related to authority operations and 03 activities. 04 Sec. 02.45.170. Fidelity bond. The authority shall obtain a fidelity bond in an 05 amount determined by the board for board members and each executive officer 06 responsible for accounts and finances. A bond must be in effect during the entire 07 tenure in office of the bonded person. 08 Article 3. Airport Facilities. 09 Sec. 02.45.200. Operation and use privileges. (a) The authority may enter 10 into contracts, leases, and other arrangements covering periods not exceeding 55 years 11 with a person, a municipality, or the United States, granting the privilege of using or 12 improving an airport or air navigation facility, a portion of an airport or air navigation 13 facility, or space in an airport or air navigation facility for commercial, governmental, 14 or other public purposes, including private plane tie down, or conferring the privilege 15 of supplying goods, commodities, services, or facilities at an airport or air navigation 16 facility. The authority may establish the terms and conditions and fix the charges, 17 rentals, and fees for the privileges or services that are reasonable and uniform for the 18 same class of privilege or service. Charges, rentals, or fees authorized by this 19 subsection may be fixed by order of the board or by negotiated or competitively 20 offered contract. The fixing of charges, rentals, or fees as permitted under this 21 subsection is not subject to AS 37.10.050(a). The terms, conditions, charges, rentals, 22 and fees shall be established with due regard to the property and improvements used 23 and the expense of operation to the state. However, use of state land and buildings by 24 the Alaska Wing-Civil Air Patrol and its squadrons shall be permitted without rental 25 charges. The authority shall provide for public notice and an opportunity to comment 26 before a charge, rental, or fee is fixed by order of the board as permitted under this 27 subsection. The public may not be deprived of its rightful, equal, and uniform use of 28 the airport, air navigation facility, or a portion of the airport or air navigation facility. 29 (b) If the authority permits space in an airport to be used as lounges for 30 members of the United States armed forces, the Alaska National Guard, the Alaska 31 Naval Militia, or the Alaska State Defense Force and if the lounges are operated by
01 persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code), the 02 authority may not charge rent for the use of the space. 03 (c) The authority may, by contract or other arrangement, upon a consideration 04 fixed by the board, grant to a qualified municipality or person for a reasonable period 05 of time the privilege of operating, as agent of the state or otherwise, an airport owned 06 or controlled by the authority. A municipality or person granted that privilege may not 07 operate the airport other than as a public airport or enter into a contract, lease, or other 08 arrangement in connection with the operation that the authority may not have 09 undertaken under (a), (b), or (d) - (f) of this section. 10 (d) Notwithstanding the right of the public to rightful, equal, and uniform use 11 under (a) of this section, before the expiration of a land lease, including the 12 termination of a lease in holdover status, entered into under this section, the lessee 13 may apply for a new lease, or for an extended term under the existing lease, for the 14 same land. The board shall approve the application for a new land lease or an 15 extended term under this section without offering the land to other persons for leasing 16 if 17 (1) the lessee is in compliance with the terms and conditions of the 18 existing or holdover lease; and 19 (2) the continued use of the leasehold is consistent with written airport 20 operation policies and is in the state's best interest. 21 (e) A land lessee owns title to the permanent improvements that the lessee 22 constructed or purchased during the term of the lease, unless the lease expressly 23 provides that the state is the owner of the permanent improvements. 24 (f) At the expiration, termination, or cancellation of a land lease entered into 25 under this section, 26 (1) a lessee who owns the improvements under (e) of this section shall 27 continue to own the permanent improvements that the lessee constructed or purchased 28 on a leasehold if the lessee is granted, under (d) of this section, a new lease or an 29 extended term for the same land; 30 (2) a lessee may sell the permanent improvements owned by the lessee 31 to a succeeding lessee of the same land;
01 (3) at the option of the lessee, the permanent improvements owned by 02 the lessee may be sold by the state at public auction with the proceeds from the sale of 03 the improvements going to the lessee, less administrative costs of the auction and 04 obligations owed under the lease to the state; the successful bidder has the same right 05 to enter into a new lease under (d) of this section without the authority offering the 06 land to other persons for leasing; 07 (4) after notice by the authority, the permanent improvements owned 08 by the lessee shall be removed at the lessee's sole expense if 09 (A) the permanent improvements do not comply with written 10 airport operational policies or are not in the state's best interest; 11 (B) the permanent improvements are not sold under (2) or (3) 12 of this subsection; or 13 (C) the authority makes written findings that the permanent 14 improvements are a hazard to the public health and safety; 15 (5) title to the permanent improvements vests in the authority if the 16 authority purchases or otherwise contracts for the ownership of the permanent 17 improvements or if the lessee abandons the permanent improvements. 18 Sec. 02.45.210. Sale and delivery of in-bond merchandise. (a) The 19 authority shall allow the sale and delivery of in-bond merchandise at an airport only 20 by an exclusive contract. 21 (b) If an exclusive contract for the sale and delivery of in-bond merchandise at 22 an airport exists on the effective date of this section, the authority may not permit or 23 confer a right on another person to offer to sell, sell, or deliver in-bond merchandise at 24 that airport except as provided in (c) of this section. 25 (c) After exclusive contracts described in (b) of this section expire, the 26 authority shall enter into one exclusive contract and, on its expiration, additional 27 successive exclusive contracts for the sale and delivery of in-bond merchandise at 28 each international airport operated by the authority. Except under the existing and 29 future exclusive contracts described in this section, the authority may not permit or 30 confer a right upon a person to offer to sell, sell, or deliver in-bond merchandise at an 31 airport.
01 (d) The authority shall offer the exclusive contracts required by this section by 02 competitive bid and shall award the contracts after considering the generation of 03 maximum revenue for the international airports revenue fund under AS 37.15.430. 04 (e) The authority shall actively supervise the operations under each exclusive 05 contract for the sale and delivery of in-bond merchandise in order to ensure the 06 effectiveness of the operations. To supervise contract operations under this section, 07 the authority shall adopt rules that provide for review of the reasonableness of price 08 schedules, quality, and assortment of merchandise, and customer service. 09 (f) This section does not apply to deliveries of in-bond merchandise as cargo 10 to airlines. In this subsection, "cargo" means goods carried by an airline under an 11 agreement between the shipper and the airline, other than a passenger ticket, that are 12 accepted, carried, and handled separately from passenger baggage and that are 13 delivered to a location other than a baggage claim area; "cargo" does not include 14 goods carried by an airline as baggage, whether belly-loaded or hand-carried and 15 whether accompanied or unaccompanied by a passenger. 16 Sec. 02.45.220. Police powers vested. The officers and employees of the 17 authority whom the board may designate have general police powers in aid of the 18 enforcement of this chapter and of the powers exercised by the authority under 19 AS 02.15 and AS 02.25. The persons designated under this section shall meet the 20 minimum standards for police officers adopted under AS 18.65.130 - 18.65.290. 21 Sec. 02.45.230. Regulation of ground transportation at airports. 22 Notwithstanding the provisions of AS 02.45.200, the authority may not exclude taxis, 23 buses, or limousines that carry passengers for hire or courtesy cars from the highways, 24 parking facilities, or other portions of an airport designated for operation or parking of 25 ground transportation vehicles. The authority may regulate by rule the operations of 26 taxis, buses, limousines, and courtesy cars as necessary to promote efficient operation 27 of an airport. In this section, "courtesy car" means a motor vehicle owned or operated 28 by a hotel, motel, or other place of public accommodation for the transportation of its 29 guests to and from the airport at the request of the guest and for which no service 30 charge is made to the guest. 31 Sec. 02.45.240. Liens. The authority may enforce the payment of charges for
01 repairs, improvements, storage, or care of personal property made or furnished by the 02 authority or its agents in connection with the operation of an airport or air navigation 03 facility owned or operated by the authority. The authority has those lien rights 04 generally allowed by law to secure payment for those services. 05 Sec. 02.45.250. Airport advisory committees. (a) The board shall establish 06 an advisory committee for each airport and shall prescribe by rule the powers, duties, 07 and procedures of each committee. An advisory committee serves only as an advisor 08 and may not exercise or be delegated a substantive power conferred on the board by 09 law. An advisory committee may take action by a majority vote of its members. 10 (b) The advisory committee for the Ted Stevens Anchorage International 11 Airport consists of the two members of the board from the Municipality of Anchorage 12 who are appointed under AS 02.45.020(a)(1) and one other member of the board 13 chosen by the chair of the board. The advisory committee shall act as an advisor to 14 the manager of the Ted Stevens Anchorage International Airport. 15 (c) The advisory committee for the Fairbanks International Airport consists of 16 the two members of the board from the Fairbanks North Star Borough who are 17 appointed under AS 02.45.020(a)(2) and one other member of the board chosen by the 18 chair of the board. The advisory committee shall act as an advisor to the manager of 19 the Fairbanks International Airport. 20 (d) The advisory committee for the Cold Bay Airport consists of the member 21 of the board from the Aleutians East Borough who is appointed under 22 AS 02.45.020(a)(3) and two other members of the board chosen by the chair of the 23 board. The advisory committee shall act as an advisor to the manager of the Cold Bay 24 Airport. 25 Article 4. Fiscal Procedures. 26 Sec. 02.45.300. Authority program and financial plan. (a) The authority 27 shall assure the development of a system of results-based operation designed to 28 increase efficiency and effectiveness of programs and services of the authority. 29 Toward that end, the authority shall, on a semi-annual basis, identify results-based 30 measures that have been used to work toward achievement of the mission statement 31 and desired results issued by the legislature and of other goals of the authority, and set
01 out the results as measured. The authority shall also prepare information that shall be 02 compiled and submitted on December 15 each year to the office of management and 03 budget, the legislature, and the legislative finance division; this information must 04 (1) identify the mission of the authority and desired results established 05 by the legislature; 06 (2) identify the goals and objectives the authority will use to achieve 07 the legislature's mission and desired results; 08 (3) set out the results of any user-group surveys and, if the results do 09 not agree with the mission and desired results, goals, and objectives, explain why; 10 (4) include written, defined methods of measuring results that apply to 11 the responsibilities, products, and services of the authority; 12 (5) identify results-based measures that have been used to work toward 13 achievement of the mission statement and desired results issued by the legislature and 14 other goals of the authority, and set out the results as measured; 15 (6) identify surveys or other methods of gathering user-group opinions 16 that have been used by the authority to identify ways to improve its programs; 17 (7) identify methods of measuring performance when the mission 18 statement and desired results issued by the legislature involve more than one authority 19 and make recommendations to eliminate duplication of government functions and 20 waste; 21 (8) identify ways in which the authority has involved its employees in 22 the development of methods of measuring results, including opportunities for 23 employee representatives to participate in committees established to develop methods 24 of measuring results; 25 (9) include the budget requested to carry out the authority's proposed 26 plans in the succeeding fiscal year, including information reflecting the expenditures 27 during the last fiscal year, the expenditures authorized for the current fiscal year, the 28 expenditures proposed for the succeeding fiscal year, an explanation of the services to 29 be provided, the total number of positions for all persons employed or under contract 30 by the agency for personal services, including those rendered for capital improvement 31 projects, the need for the services, the cost of the services, and other information
01 requested by the office of management and budget; 02 (10) include a report of receipts of the authority during the last fiscal 03 year, an estimate of receipts during the current fiscal year, and an estimate of receipts 04 for the succeeding fiscal year; 05 (11) identify legislation required to implement the proposed programs 06 and financial plans; 07 (12) include an evaluation of the advantages and disadvantages of 08 specific alternatives to existing or proposed activities or administrative methods of the 09 authority. 10 (b) The document prepared under (a) of this section must describe the 11 relationship of the services provided by the authority to those services provided by 12 other government agencies and nongovernmental organizations. 13 (c) If the authority fails to transmit the program and financial information 14 required under (a) of this section on the specified date, the governor may prepare the 15 information. 16 (d) All goals and objectives, plans, programs, estimates, budgets, and other 17 documents forwarded to the governor by the authority under this section are public 18 information on and after the date they are forwarded. 19 (e) The authority shall, with participation of its employees, develop methods 20 for measuring authority results. A group or committee established by the authority to 21 develop methods of measuring results shall include a representative of each of the 22 bargaining units that represents employees of the authority. 23 Sec. 02.45.310. Program execution. (a) Except as limited by executive 24 decisions of the governor, the mission statements and desired results issued by the 25 legislature, appropriations by the legislature, and other provisions of law, the authority 26 has power to administer its programs and is responsible for the proper management of 27 the airports. 28 (b) The governor may direct the reduction of expenditures by the authority 29 during the fiscal year only if the governor determines that the planned expenditures 30 can no longer be made due to factors outside the control of the state that make the 31 expenditures factually impossible.
01 Sec. 02.45.320. Acceptance of money from federal and other sources. The 02 authority may accept federal money and money from other public or private sources to 03 accomplish the purposes of this chapter; however, the authority may not expend the 04 money without appropriation of the money by the legislature. Federal money accepted 05 under this chapter shall be accepted and expended by the authority under the terms and 06 conditions prescribed by federal law and regulations. 07 Sec. 02.45.330. Annual report. By January 15 of each year, the authority 08 shall submit to the governor, the legislature, the mayor of the Municipality of 09 Anchorage, the mayor of the Fairbanks North Star Borough, the mayor of the City of 10 Fairbanks, the mayor of the City of Cold Bay, and the mayor of the Aleutians East 11 Borough a concise report describing the operations, income, and expenditures for the 12 preceding fiscal year. The report must contain information substantially similar to that 13 required by the Security and Exchange Commission form 10-K. The report must also 14 include financial statements audited by an independent outside auditor. 15 Sec. 02.45.340. Annual audit. The authority shall have a certified audit of its 16 financial records prepared annually by an independent certified public accountant. 17 Sec. 02.45.350. Responsibility of authority for revenue bonds. The 18 authority succeeds to all rights, duties, powers, and obligations of the state bond 19 committee regarding the issuance, sale, and repayment of revenue bonds authorized 20 under AS 37.15.410 - 37.15.550. 21 Article 5. General Provisions. 22 Sec. 02.45.900. Authority employees. (a) Employees of the authority are not 23 employees of the state. 24 (b) Notwithstanding (a) of this section, employees of the authority who were 25 state employees the day before they were transferred to the authority shall continue to 26 participate in the supplemental employee benefits program under AS 39.30.150 - 27 39.30.180 and in the public employees' retirement system under AS 39.35. The 28 authority shall pay the employer's contributions required under AS 39.30.150 - 29 39.30.180 and under AS 39.35. 30 (c) The authority may engage in collective bargaining with its employees. 31 Sec. 02.45.910. Application of existing laws. Unless specifically provided
01 otherwise in this chapter, the following laws do not apply to the operations of the 02 authority: 03 (1) AS 36.30, except as provided in that chapter; 04 (2) AS 37.07; 05 (3) AS 39, except as provided in this chapter; 06 (4) AS 44.62.010 - 44.62.300. 07 Sec. 02.45.990. Definitions. In this chapter, unless the context requires 08 otherwise, 09 (1) "airport" means the international airports owned and operated by 10 the state and located at or near the cities of Anchorage and Fairbanks and the airport 11 owned and operated by the state at or near the City of Cold Bay; 12 (2) "authority" means the Alaska Airport Authority; 13 (3) "board" means the board of directors of the authority; 14 (4) "bonds" means the international airports revenue bonds authorized 15 by AS 37.15.410 - 37.15.550; 16 (5) "capital improvement" means a project for the construction, 17 rehabilitation, rebuilding, enlarging, or improving of an airport, as determined by the 18 authority to be necessary or desirable for efficient operation of the airports operated by 19 the authority and to best serve the public. 20 Sec. 02.45.995. Short title. This chapter may be cited as the Alaska Airport 21 Authority Act. 22 * Sec. 3. AS 02.15.010 is amended to read: 23 Sec. 02.15.010. Purpose. The purpose of this chapter is to 24 (1) further the public interest in aeronautical progress by providing for 25 the protection of persons and promotion of safety in aeronautics through appropriate 26 measures consistent with and supplementary to but not duplicating federal aeronautics 27 laws and regulations, with a view to the least possible interference with aviation 28 activity compatible with the general welfare; 29 (2) encourage and develop aeronautics and the establishment and 30 operation of a state system of airports through cooperation among the department, 31 the authority, and [WITH] municipalities, and otherwise, including cooperation with
01 the federal government and acceptance and utilization of federal funds allotted for this 02 purpose. 03 * Sec. 4. AS 02.15.020(b) is amended to read: 04 (b) The department may enter into contracts necessary or advisable to the 05 execution of the powers granted to the department [IT] by this chapter. Where the 06 planning, acquisition, construction, improvement, maintenance, or operation of an 07 airport or air navigation facility subject to the jurisdiction of the department is 08 financed wholly or partially with federal money, the department, as agent of the state, 09 or of a municipality, or person, may let contracts in the manner prescribed by the 10 federal authorities acting under the laws and rules and regulations of the United States. 11 * Sec. 5. AS 02.15.060 is amended to read: 12 Sec. 02.15.060. Establishment, operation, and maintenance. Except as 13 otherwise provided under this title, the [THE] department may plan, establish, 14 construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police 15 airports and air navigation facilities within the state. 16 * Sec. 6. AS 02.15.070(a) is amended to read: 17 (a) For the purposes specified in AS 02.15.060, the department may, by 18 purchase, gift, devise, lease, condemnation, or otherwise, acquire real or personal 19 property, or any interest in the property including easements in airport hazards or land 20 outside the boundaries of an airport or airport site, necessary to permit the removal, 21 elimination, obstruction-marking, or obstruction-lighting of airport hazards, or to 22 prevent the establishment of airport hazards. The department may acquire existing 23 airports and air navigation facilities in the same manner except it may not acquire or 24 take over an airport or air navigation facility owned or controlled by the authority, a 25 municipality, or a person without the consent of the authority, municipality, or 26 person. 27 * Sec. 7. AS 02.15.090(a) is amended to read: 28 (a) In operating an airport or air navigation facility owned or controlled by the 29 state and subject to the jurisdiction of the department, the department may enter 30 into contracts, leases, and other arrangements covering periods not exceeding 55 years 31 with a person, a municipality, or the United States, granting the privilege of using or
01 improving an airport or air navigation facility, [OR] a portion of an airport or air 02 navigation facility, [IT] or space in an airport or air navigation facility [IT] for 03 commercial, governmental, or other public purposes, including private plane tie down, 04 or conferring the privilege of supplying goods, commodities, services, or facilities at 05 an airport or air navigation facility. The department may establish the terms and 06 conditions and fix the charges, rentals, and fees for the privileges or services that are 07 reasonable and uniform for the same class of privilege or service. [CHARGES, 08 RENTALS, OR FEES AUTHORIZED BY THIS SUBSECTION MAY BE FIXED 09 FOR THE INTERNATIONAL AIRPORTS BY ORDER OF THE COMMISSIONER 10 OR BY NEGOTIATED OR COMPETITIVELY OFFERED CONTRACT.] 11 Notwithstanding AS 37.10.050(a), the fixing of charges, rentals, or fees as permitted 12 under this subsection is not subject to the adoption of regulation provisions of 13 AS 44.62 (Administrative Procedure Act). The terms, conditions, charges, rentals, and 14 fees shall be established with due regard to the property and improvements used and 15 the expense of operation to the state. However, use of state land and buildings by the 16 Alaska Wing, Civil Air Patrol and its squadrons shall be permitted without rental 17 charges. If the department permits space in state-owned or state-controlled airports 18 that are subject to the jurisdiction of the department to be used as lounges for 19 members of the United States armed forces, the Alaska National Guard, the Alaska 20 Naval Militia, or the Alaska State Defense Force, and if the lounges are operated by 21 persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code), 22 rent may not be charged for the use of the space. The department shall provide for 23 public notice and an opportunity to comment before a charge, rental, or fee is fixed by 24 order of the commissioner as permitted under this subsection. The public may not be 25 deprived of its rightful, equal, and uniform use of the airport, air navigation facility, or 26 a portion of them. 27 * Sec. 8. AS 02.15.090(b) is amended to read: 28 (b) The department may by contract or other arrangement, upon a 29 consideration fixed by the department [IT], grant to a qualified municipality or 30 person for a reasonable period of time the privilege of operating, as agent of the state 31 or otherwise, an airport owned or controlled by the state and subject to the
01 jurisdiction of the department. A municipality or person granted that privilege may 02 not operate the airport other than as a public airport or enter into a contract, lease, or 03 other arrangement in connection with the operation that the department may not have 04 undertaken under (a) or (c) - (e) of this section. 05 * Sec. 9. AS 02.15.090(d) is amended to read: 06 (d) A [LAND] lessee of land under this section owns title to the permanent 07 improvements that the lessee constructed or purchased during the term of the lease, 08 unless the lease expressly provides that the state is the owner of the permanent 09 improvements. 10 * Sec. 10. AS 02.15.095 is amended to read: 11 Sec. 02.15.095. Courtesy cars. Notwithstanding the provisions of 12 AS 02.15.090(a), in operating an airport subject to the jurisdiction of the 13 department, the department may not exclude from the streets, roads, highways, 14 parking facilities, or other portions of the [A STATE-OPERATED] airport designated 15 for operation or parking of ground transportation vehicles, nor may the department 16 prohibit from picking up and discharging passengers [,] those motor vehicles 17 commonly known as "courtesy cars." In this section, "courtesy cars" means motor 18 vehicles ["] owned or operated by hotels, motels, or other similar places of public 19 accommodation for the transportation of their guests to and from the airport at the 20 request of the guest and for which service no charge is made to the guest. 21 * Sec. 11. AS 02.15.100 is amended to read: 22 Sec. 02.15.100. Liens. The department may enforce the payment of any 23 charges for repairs, improvements, storage, or care of personal property made or 24 furnished by the department or its agents [,] in connection with the operation of an 25 airport or air navigation facility owned or operated by the state and subject to the 26 jurisdiction of the department. The state has those lien rights generally allowed by 27 law to secure payment for those services. 28 * Sec. 12. AS 02.15.102 is amended to read: 29 Sec. 02.15.102. Use of airports for utilities. (a) A utility facility may be 30 constructed, placed, or maintained across, along, over, under, or within 31 (1) a state airport, subject to the jurisdiction of the department, only
01 under [IN ACCORDANCE WITH] regulations adopted or procedures prescribed by 02 the department and only if authorized by a written permit issued by the department; 03 (2) a state airport, subject to the jurisdiction of the authority 04 under AS 02.45, only under rules adopted by the authority and only if authorized 05 by written permit issued by the authority. 06 (b) The department or the authority may charge a fee for a permit that it 07 issues [ISSUED] under this section. 08 * Sec. 13. AS 02.15.104 is amended to read: 09 Sec. 02.15.104. Relocation of utility facilities incident to airport projects. 10 (a) If, incident to the construction of an airport project, the department or authority 11 determines and orders that a utility facility located across, along, over, under, or within 12 a state airport subject to its jurisdiction must be changed, relocated, or removed, the 13 utility owning or maintaining the facility shall change, relocate, or remove the facility 14 [IT] in accordance with the order, within a reasonable time set by the department or 15 authority in the order. 16 (b) If the utility facility is not changed, relocated, or removed in accordance 17 with the order, a permit authorizing the facility issued by the department or the 18 authority under AS 02.15.102 becomes invalid, and the facility will be considered an 19 unauthorized encroachment subject to the provisions of AS 02.15.114. 20 (c) The cost of change, relocation, or removal, as defined in AS 02.15.260, 21 ordered under (a) of this section is to be paid as follows: 22 (1) by the department or the authority as a cost of airport construction 23 [,] if the utility facility is installed or authorized after June 11, 1986, under a utility 24 permit or a regulation adopted by the department and is installed in the location 25 specified in the permit or the regulation; 26 (2) by the department or the authority as a cost of airport construction 27 [,] if the utility facility was installed before June 11, 1986, under a utility permit or 28 utility easement and is in the location specified in the permit or easement; 29 (3) by the department or the authority as a cost of airport construction 30 [,] if the utility facility was installed before the location became part of a state airport 31 or before permits were required;
01 (4) by the department or the authority as a cost of airport construction 02 [,] if the utility permit that requires the utility to pay the relocation cost was issued 03 more than five years before the contract for the airport construction project was first 04 advertised; 05 (5) by the utility in all other cases unless 06 (A) for airports subject to the jurisdiction of the 07 department, the commissioner finds it is in the public interest for the cost to 08 be paid by the department; 09 (B) for airports subject to the jurisdiction of the authority, 10 the board of directors of the authority finds that it is in the public interest 11 for the cost to be paid by the authority. 12 * Sec. 14. AS 02.15.106 is amended to read: 13 Sec. 02.15.106. Encroachment permits. An encroachment may be 14 constructed, placed, changed, or maintained across or within an airport, but only in 15 accordance with regulations or procedures adopted by the department for airports 16 subject to the jurisdiction of the department or with rules adopted by the 17 authority for airports subject to the jurisdiction of the authority. An 18 encroachment may not be constructed, placed, maintained, or changed until the 19 encroachment [IT] is authorized by a written permit issued by the department or the 20 authority, unless the department or the authority provides otherwise by regulation 21 or rule. The department or the authority may charge a fee for a permit that it issues 22 [ISSUED] under this section. 23 * Sec. 15. AS 02.15.108 is amended to read: 24 Sec. 02.15.108. Relocation or removal of encroachment. If, incidental to 25 the construction or maintenance of a state airport, the department or the authority 26 determines and orders that an encroachment previously authorized by written permit 27 must be changed, relocated, or removed, the owner of the encroachment shall change, 28 relocate, or remove the encroachment [IT] within a reasonable time set by the 29 department or the authority in the order. The cost of the change, relocation, or 30 removal shall be paid as provided in AS 02.15.104(c). If the owner does not change, 31 relocate, or remove an encroachment within the time set by the department or the
01 authority, the encroachment will be considered an unauthorized encroachment subject 02 to the provisions of AS 02.15.114. 03 * Sec. 16. AS 02.15.110 is amended to read: 04 Sec. 02.15.110. Unauthorized encroachments. If an unauthorized 05 encroachment exists in, on, under, or over a state airport, the department or the 06 authority, as appropriate, may require the removal of the encroachment, at the 07 expense of the owner, in the manner provided in AS 02.15.112 - 02.15.114. 08 * Sec. 17. AS 02.15.112 is amended to read: 09 Sec. 02.15.112. Notice of removal of unauthorized encroachment. The 10 department or the authority, as appropriate, shall give notice to [NOTICE 11 SHALL BE GIVEN] the owner, occupant, or person in possession of an unauthorized 12 encroachment, or to another person causing or permitting the encroachment to exist, 13 by serving upon any of them a notice demanding the removal of the encroachment 14 within a time limit set by the department or the authority. The notice must describe 15 the encroachment with reasonable certainty as to its character and location. Service of 16 the notice may be made by certified mail. 17 * Sec. 18. AS 02.15.114 is amended to read: 18 Sec. 02.15.114. Removal at owner's expense after noncompliance; removal 19 expense. After a failure of the owner of an unauthorized encroachment to comply 20 with a notice or order of the department or the authority under AS 02.15.104, 21 02.15.108, or 02.15.112, the department or the authority, as appropriate, may 22 remove the encroachment, or cause the encroachment [IT] to be removed. The 23 owner of the unauthorized encroachment shall pay to the department or the authority 24 (1) the expense of the removal of the encroachment; 25 (2) all costs and expenses paid by the state as a result of a claim or 26 claims filed against the state by third parties for damages due to delays because the 27 encroachment was not changed, removed, or relocated according to the order of the 28 department or the authority; and 29 (3) costs and expense of suit. 30 * Sec. 19. AS 02.15.120 is amended to read: 31 Sec. 02.15.120. Assistance to construct, enlarge, or improve air navigation
01 facilities. The department may match available funds with those of the authority, 02 municipalities, federal agencies, or other state agencies, for project costs relating to the 03 construction, enlargement, or improvement of airports. The department may assist 04 persons in the construction, enlargement, and improvement of airports and air 05 navigation facilities. The airports and facilities, until they are abandoned as such, shall 06 be at all times available for the use of and accessible to the general public, and 07 maintained as public airports and facilities. 08 * Sec. 20. AS 02.15.130 is amended to read: 09 Sec. 02.15.130. Assistance to the federal government, municipalities, and 10 other persons. The department may make available its engineering, maintenance, and 11 other services, with or without charge, to the authority, the federal government, [OR 12 TO] a municipality, or a person in connection with the planning, acquisition, 13 construction, improvement, maintenance, or operation of airports or air navigation 14 facilities. 15 * Sec. 21. AS 02.15.205(a) is amended to read: 16 (a) A person or the authority may not construct, reconstruct, relocate, or 17 extend an airport, airstrip, or private air facility within two miles of a federal-aid 18 highway or proposed federal-aid highway without first obtaining the written approval 19 of the commissioner, as provided by regulation. 20 * Sec. 22. AS 02.15.210 is amended to read: 21 Sec. 02.15.210. Exclusive rights prohibited. The department may not grant 22 an exclusive right for the use of an airway, airport, or air navigation facility under its 23 jurisdiction. This section does not prevent the making of contracts, leases, and other 24 arrangements under AS 02.15.060 - 02.15.100 and 02.15.120, including exclusive 25 contracts for the sale and delivery of in-bond merchandise [DESCRIBED IN 26 AS 02.15.091]. 27 * Sec. 23. AS 02.15.260 is amended by adding a new paragraph to read: 28 (18) "authority" means the Alaska Airport Authority. 29 * Sec. 24. AS 02.25.110(4) is amended to read: 30 (4) "department" means the Department of Transportation and Public 31 Facilities with regard to airports that are not subject to AS 02.45 and the Alaska
01 Airport Authority with regard to airports that are subject to AS 02.45; 02 * Sec. 25. AS 02.25.110 is amended by adding a new paragraph to read: 03 (8) "regulation" includes rules adopted by the board of directors of the 04 Alaska Airport Authority. 05 * Sec. 26. AS 18.65.290(6) is amended to read: 06 (6) "police officer" means 07 (A) a full-time employee of the state or a municipal police 08 department with the authority to arrest and issue citations; detain a person 09 taken into custody until that person can be arraigned before a judge or 10 magistrate; conduct investigations of violations of and enforce criminal laws, 11 regulations, and traffic laws; search with or without a warrant persons, 12 dwellings, and other forms of property for evidence of a crime; and take other 13 action consistent with exercise of these enumerated powers when necessary to 14 maintain the public peace; 15 (B) an officer or employee of the Alaska Airport Authority 16 [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES] 17 who is stationed at an international airport and has been designated to have the 18 general police powers authorized under AS 02.45.220 [AS 02.15.230(a)]; 19 (C) a University of Alaska public safety officer with general 20 police powers authorized under AS 14.40.043; 21 * Sec. 27. AS 19.10.270 is amended by adding a new subsection to read: 22 (d) In this section, 23 (1) "commissioner" means the commissioner of transportation and 24 public facilities with regard to airports not subject to AS 02.45 and the board of 25 directors of the Alaska Airport Authority with regard to airports subject to AS 02.45; 26 (2) "regulation" includes a rule adopted by the board of directors of the 27 Alaska Airport Authority. 28 * Sec. 28. AS 23.10.037(b) is amended to read: 29 (b) The provisions of (a) of this section do not apply to the state or a political 30 subdivision of the state when dealing with police officers in its employ or with persons 31 applying to be employed as police officers. In this subsection, "police officers"
01 includes officers and employees of the Alaska Airport Authority [DEPARTMENT 02 OF TRANSPORTATION AND PUBLIC FACILITIES] who are stationed at an 03 [INTERNATIONAL] airport operated by the authority and have been designated to 04 have the general police powers authorized under AS 02.45.220 [AS 02.15.230(a)]. 05 * Sec. 29. AS 35.27 is amended by adding a new section to read: 06 Sec. 35.27.025. Application to the Alaska Airport Authority. This chapter 07 applies to the Alaska Airport Authority. Compliance with this chapter is the sole 08 responsibility of the Alaska Airport Authority with regard to the public buildings and 09 facilities of the authority. 10 * Sec. 30. AS 35.27.030(1) is amended to read: 11 (1) "building" or "facility" means a permanent improvement 12 constructed by the department or the Alaska Airport Authority; the term 13 (A) includes [, BUT IS NOT LIMITED TO,] 14 (i) schools, office buildings, and court buildings; 15 (ii) other buildings that [WHICH] the commissioner 16 determines are designed for substantial public use; 17 (iii) boats and vessels of the marine highway system; 18 (iv) transportation facilities that [WHICH] 19 accommodate traveling passengers; 20 (B) excludes other transportation facilities; 21 * Sec. 31. AS 36.10.180(a) is amended to read: 22 (a) The preferences established in AS 36.10.150 - 36.10.175 apply to work 23 performed 24 (1) under a contract for construction, repair, preliminary surveys, 25 engineering studies, consulting, maintenance work, or any other retention of services 26 necessary to complete a given project that is let by the state or an agency of the state, a 27 department, office, state board, commission, public corporation, or other 28 organizational unit of or created under the executive, legislative, or judicial branch of 29 state government, including the University of Alaska, the Alaska Airport Authority, 30 and the Alaska Railroad Corporation, or by a political subdivision of the state 31 including a regional school board with respect to an educational facility under
01 AS 14.11.020; 02 (2) on a public works project under a grant to a municipality under 03 AS 37.05.315 or AS 37.06.010; 04 (3) on a public works project under a grant to a named recipient under 05 AS 37.05.316; 06 (4) on a public works project under a grant to an unincorporated 07 community under AS 37.05.317 or AS 37.06.020; and 08 (5) on any other public works project or construction project that is 09 funded in whole or in part by state money. 10 * Sec. 32. AS 36.30.015(e) is amended to read: 11 (e) The board of directors of the Alaska Railroad Corporation, the board of 12 directors of the Alaska Airport Authority, and the board of directors of the Alaska 13 Aerospace Development Corporation shall adopt procedures to govern the 14 procurement of supplies, services, professional services, and construction. The 15 procedures must be substantially equivalent to the procedures prescribed in this 16 chapter and in regulations adopted under this chapter. Notwithstanding the other 17 provisions of this subsection, the Alaska Railroad Corporation, the Alaska Airport 18 Authority, and the Alaska Aerospace Development Corporation shall comply with 19 AS 36.30.170(b), and, when the Department of Transportation and Public Facilities 20 authorizes the Alaska Railroad Corporation to perform construction work instead of 21 the Department of Transportation and Public Facilities, the Alaska Railroad 22 Corporation shall use competitive sealed bidding or competitive sealed proposals 23 under AS 36.30.100 - 36.30.270 to procure the supplies, services, professional 24 services, and construction services necessary for the work and, to ensure the state 25 obtains the lowest cost for the project, may submit a bid or proposal for the work. 26 * Sec. 33. AS 36.30.050(c) is amended to read: 27 (c) The lists may be used by the chief procurement officer or an agency when 28 issuing invitations to bid or requests for proposals under this chapter. The lists may be 29 used by the legislative council, the court system, the Alaska Airport Authority, and 30 the Alaska Railroad Corporation. 31 * Sec. 34. AS 36.30.850(b)(8) is amended to read:
01 (8) acquisitions or disposals of property and other contracts relating to 02 airports under AS 02.15.070, 02.15.090, AS 02.45.120, 02.45.200, 02.45.210 03 [02.15.091], and AS 44.88; 04 * Sec. 35. AS 36.30.990(1) is amended to read: 05 (1) "agency" 06 (A) means a department, institution, board, commission, 07 division, authority, public corporation, the Alaska Pioneers' Home, or other 08 administrative unit of the executive branch of state government; 09 (B) does not include 10 (i) the University of Alaska; 11 (ii) the Alaska Railroad Corporation; 12 (iii) the Alaska Housing Finance Corporation; 13 (iv) a regional Native housing authority created under 14 AS 18.55.996 or a regional electrical authority created under 15 AS 18.57.020; 16 (v) the Department of Transportation and Public 17 Facilities, in regard to the repair, maintenance, and reconstruction of 18 vessels, docking facilities, and passenger and vehicle transfer facilities 19 of the Alaska marine highway system; 20 (vi) the Alaska Aerospace Development Corporation; 21 (vii) the Alaska State Pension Investment Board; 22 (viii) the Alaska Seafood Marketing Institute; 23 (ix) the Alaska Airport Authority; 24 * Sec. 36. AS 37.05 is amended by adding a new section to article 1 to read: 25 Sec. 37.05.055. Delegation to the Alaska Airport Authority. The 26 commissioner of administration may delegate the performance of the functions under 27 this chapter as they relate to the Alaska Airport Authority to the authority and set the 28 criteria and guidelines that shall be followed. 29 * Sec. 37. AS 37.15.415 is amended to read: 30 Sec. 37.15.415. Continuing revenue bond debt service appropriation. The 31 amounts required annually to pay the principal, interest, and redemption premium on
01 all issued and outstanding international airports revenue bonds of the state are 02 appropriated each fiscal year from the international airports revenue fund to the board 03 [STATE BOND COMMITTEE] to make all required payments of principal, interest, 04 and redemption premium. 05 * Sec. 38. AS 37.15.420(b) is amended to read: 06 (b) The bond resolution may provide for the investment of money in the 07 construction fund in a manner that the board [COMMITTEE] may determine. The 08 interest earned upon or any profits derived from the sale of this investment shall be 09 deposited in and become a part of the construction fund. 10 * Sec. 39. AS 37.15.420(c) is amended to read: 11 (c) By January 1 of each year, the board [COMMISSIONER OF 12 TRANSPORTATION AND PUBLIC FACILITIES] shall submit to the legislature an 13 annual spending plan that contains information regarding the planned expenditure of 14 money from the construction fund during the next fiscal year. The spending plan must 15 include 16 (1) the total amount of money to be spent from the construction fund; 17 (2) a description of the work to be performed on airport facilities that 18 will be financed with money from the construction fund; 19 (3) the amount from the construction fund that will be spent under 20 contracts with the private sector and a description of the goods or services to be 21 provided to the state under each of the contracts; 22 (4) the amounts that the state will spend from the construction fund for 23 purposes other than contract payments and a description of each of those purposes, 24 including financing costs, administrative and other overhead costs, and contingencies. 25 * Sec. 40. AS 37.15.430(b) is amended to read: 26 (b) The investment of money in the revenue fund may be made in the manner 27 that the board [COMMITTEE] may determine. The interest earned upon or any 28 profits derived from the sale of this investment shall be deposited in and become a part 29 of the revenue fund. 30 * Sec. 41. AS 37.15.440 is amended to read: 31 Sec. 37.15.440. Redemption fund. There is another special fund of the state,
01 known as the "International Airports Revenue Bond Redemption Fund," which is a 02 trust fund for paying and securing the payment of the principal of and interest and 03 redemption premium, if any, on the bonds and which shall be at all times completely 04 segregated and set apart from all other funds of the state. The board [COMMITTEE], 05 on behalf of the state, shall obligate and bind the state to set aside and pay into the 06 bond redemption fund any part or parts of, or all of, or a fixed proportion of, or a fixed 07 amount of the money in the revenue fund sufficient to pay the principal of and interest 08 and redemption premium, if any, on the bonds as the payments become due and, if the 09 board [IT] considers it necessary, to set aside and maintain reserves for this purpose. 10 The bond redemption fund shall be drawn upon for the purpose of paying the principal 11 of and interest and redemption premium, if any, on the bonds, and the bonds do not 12 constitute a general obligation of the state. 13 * Sec. 42. AS 37.15.450(a) is amended to read: 14 (a) The bonds may be sold at public or private sale in the manner, in the 15 amounts or series, and at the time or times that the board [COMMITTEE] determines. 16 However, the bonds, or each series of bonds [THEM], shall be sold at such a price so 17 that the effective interest rate over the life of the bonds does not exceed 11 percent per 18 year or that rate of interest that is 125 percent of the rate of the Bond Buyer Index of 19 20 Municipal Bond Average Yields for the week previous to the date of sale of the 20 bonds, whichever is higher. Interest shall be payable annually or semiannually. 21 * Sec. 43. AS 37.15.450(b) is amended to read: 22 (b) The bonds mature at the time or times fixed by the board [COMMITTEE]. 23 The bonds may be subject to redemption before their fixed maturities as determined by 24 the board [COMMITTEE] and with a premium or premiums fixed by the board 25 [COMMITTEE], but a bond is not subject to redemption before its fixed maturity date 26 unless the right so to redeem that bond is expressly mentioned on the face of the bond. 27 The bonds may be in denominations determined by the board [COMMITTEE]; may 28 be issued in coupon form or in fully registered form, and may be registrable as to 29 principal or both principal and interest, all under rules [REGULATIONS] and 30 conditions that the board [COMMITTEE] shall provide; shall be payable as to 31 principal and interest at such place or places as may be determined by the board
01 [COMMITTEE]; shall be signed on behalf of the state by the governor and shall be 02 attested by the lieutenant governor, both of which signatures may be facsimile 03 signatures; shall have the seal of the state impressed, printed, or lithographed on them, 04 and each of the interest coupons attached to them shall be signed by the facsimile 05 signatures of these officials; shall be issued under and subject to such terms, 06 conditions, and covenants providing for the payment of the principal of them and 07 interest on them and such other terms, conditions, covenants, and protective features 08 safeguarding this payment and relating to the maintenance, operation, and 09 improvement of the airports as found necessary by the board [COMMITTEE], which 10 covenants may include a provision requiring the setting aside and maintenance of 11 certain reserves to secure the payment of this principal and interest. The board 12 [COMMITTEE] may provide that any additional bonds authorized after June 27, 13 1972, by the legislature to be payable out of the same source or sources as the bonds 14 authorized as of that date may later be issued on a parity with the bonds authorized as 15 of that date upon compliance with any conditions that [WHICH] the board 16 [COMMITTEE] may prescribe. 17 * Sec. 44. AS 37.15.450(c) is amended to read: 18 (c) If found reasonably necessary, the board [COMMITTEE] may select a 19 trustee or trustees for the holders of the bonds or any series of them, for the 20 safeguarding and disbursement of any of the money in any of the funds created by 21 AS 37.15.420, 37.15.430, and 37.15.440, or for duties with respect to the 22 authentication, delivery, and registration of the bonds as the board [COMMITTEE] 23 may determine, and shall fix the rights, duties, powers, and obligations of the trustee 24 or trustees. 25 * Sec. 45. AS 37.15.450(d) is amended to read: 26 (d) In its determination of all of the matters and questions relating to the 27 issuance and sale of the bonds and the fixing of the maturities, terms, conditions, and 28 covenants of the bonds [THEM] as provided in (a), (b), and (c) of this section, the 29 decisions of the board [COMMITTEE] shall be those found to be reasonably 30 necessary for the best interests of the state and its inhabitants, and those that will 31 accomplish the most advantageous sale of the bonds, with due regard, however, to
01 necessary or normal costs of maintenance and operation, renewals, and replacements 02 of and repairs to the airports and to all improvements to them and facilities of them 03 owned, used, operated, or leased in connection with them, the future growth and 04 expansion of the airports and all of such facilities, and the possibility of additional 05 revenue bond financing for airports purposes. Any such decisions of the board 06 [COMMITTEE], as expressed in any bond resolution, are final and conclusive when 07 any bonds have been issued pursuant to the bond resolution. 08 * Sec. 46. AS 37.15.460 is amended to read: 09 Sec. 37.15.460. Bond resolution. The board [COMMITTEE] shall adopt the 10 bond resolution and prepare all other documents and proceedings necessary for the 11 issuance, sale, and delivery of the bonds or any part or series of the bonds [THEM]. 12 The bond resolution must fix the principal amount, denomination, date, maturities, 13 place or places of payment, rights of redemption, if any, terms, form, conditions, and 14 covenants of the bonds or each series of the bonds [THEM]. The board 15 [COMMITTEE] shall also determine and provide for the date and manner of sale of 16 the bonds, and shall provide whether the notice of sale is to be published elsewhere in 17 addition to the publication required by AS 37.15.450. 18 * Sec. 47. AS 37.15.480 is amended to read: 19 Sec. 37.15.480. Amounts required for payments. The board 20 [COMMITTEE] shall, before December 31 of each year, commencing with the year in 21 which the bonds are issued, certify [TO THE COMMISSIONERS OF REVENUE 22 AND TRANSPORTATION AND PUBLIC FACILITIES] the amounts required in the 23 next ensuing calendar year by the bond resolution or resolutions to be paid out of the 24 revenue fund into the bond redemption fund and to be paid into and maintained in any 25 reserve fund or account or any other fund or account created by the bond resolution or 26 resolutions, and shall also certify [TO THE COMMISSIONERS] the last date or dates 27 upon which payments may be made. 28 * Sec. 48. AS 37.15.500 is amended to read: 29 Sec. 37.15.500. Airport charges. As provided in AS 02.45.200, the board 30 [AS 02.15.090(a), THE COMMISSIONER OF TRANSPORTATION AND PUBLIC 31 FACILITIES] shall fix and collect the fees, charges, and rentals derived by the state
01 from the ownership, lease, use, and operation of the airports and all of the facilities 02 and improvements that will provide revenue sufficient to comply with all of the 03 covenants of the bond resolution. 04 * Sec. 49. AS 37.15.510 is amended to read: 05 Sec. 37.15.510. State improvements to airports. The state is authorized to 06 acquire, equip, construct, and install additions and improvements to and extensions of 07 the airports, facilities for the landing, parking, loading, storing, repairing, safety, and 08 utility of aircraft at the airports and passenger, freight, and terminal facilities, 09 including safety equipment and devices at the airports, found to be necessary by the 10 board [COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES]. 11 * Sec. 50. AS 37.15.520(a) is amended to read: 12 (a) The bonds or any part of them may be refunded at or before their maturity 13 by the issuance of refunding revenue bonds of the state if, in the opinion of the board, 14 [COMMITTEE] refunding is advantageous to and in the best interests of the state and 15 its inhabitants. 16 * Sec. 51. AS 37.15.520(b) is amended to read: 17 (b) The issuance of refunding bonds need not be authorized by an Act of the 18 legislature, and the board [COMMITTEE] shall adopt the resolution or resolutions 19 and prepare all other documents and proceedings necessary for the issuance, exchange 20 or sale, and delivery of such bonds. All provisions of AS 37.15.410 - 37.15.550 21 applicable to revenue bonds are applicable to the refunding bonds and to the issuance, 22 sale, or exchange of them, except as otherwise provided in this section. 23 * Sec. 52. AS 37.15.550(3) is amended to read: 24 (3) "bond resolution" means the resolution or resolutions authorizing 25 the issuance of bonds, adopted by the board [COMMITTEE] under AS 37.15.460; 26 * Sec. 53. AS 37.15.550 is amended by adding a new paragraph to read: 27 (10) "board" means the board of directors of the Alaska Airport 28 Authority, or any other committee, body, department, or officer of the state that or 29 who succeeds to the rights, powers, duties, and obligations of the board by Act of the 30 legislature. 31 * Sec. 54. AS 38.05.030(b) is amended to read:
01 (b) The provisions of this chapter do not apply to any power, duty, or authority 02 now or in the future granted to the Department of Transportation and Public Facilities 03 or the Alaska Airport Authority in the name of the state, to acquire, use, lease, 04 dispose of, or exchange real property, or any interest in real property. Land assigned 05 by the division of lands to the Department of Transportation and Public Facilities or 06 the Alaska Airport Authority shall be returned to the management of the division of 07 lands when the land [IT] is no longer needed for the purposes assigned. 08 * Sec. 55. AS 38.05.030 is amended by adding a new subsection to read: 09 (h) Except for land that is required to be returned to the department under (b) 10 of this section, the Alaska Airport Authority may dispose of real property (1) acquired 11 by the authority under AS 02.45.120, or (2) acquired by the Department of 12 Transportation and Public Facilities under AS 02.15.070 and transferred to the 13 authority under provisions of the Act creating the authority. Land conveyed under this 14 section to a municipality for less than fair market value shall be credited against the 15 municipality's entitlement under AS 29.65. 16 * Sec. 56. AS 39.35 is amended by adding a new section to read: 17 Sec. 39.35.152. Alaska Airport Authority employees. (a) An employee of 18 the Alaska Airport Authority who was an employee of the state on the day before the 19 employee was transferred to the authority under sec. 63 of this Act shall be included in 20 the system. 21 (b) An employee of the Alaska Airport Authority who is not covered under (a) 22 of this section shall be included in the system on the effective date of the authority's 23 participation in the system for that employee. 24 * Sec. 57. AS 39.50.200(b) is amended by adding a new paragraph to read: 25 (57) Alaska Airport Authority (AS 02.45.010). 26 * Sec. 58. AS 39.52.960(2) is amended to read: 27 (2) "agency" means a department, the office of the governor, or an 28 entity in the executive branch, including but not limited to the University of Alaska, 29 public or quasi-public corporations, boards or commissions, [AND] the Alaska 30 Railroad Corporation, and the Alaska Airport Authority; 31 * Sec. 59. AS 39.52.960(4) is amended to read:
01 (4) "board or commission" means a board, commission, authority, or 02 board of directors of a public or quasi-public corporation, established by statute in the 03 executive branch, including the Alaska Railroad Corporation and the Alaska 04 Airport Authority, but excluding members of a negotiated regulation making 05 committee under AS 44.62.710 - 44.62.800; 06 * Sec. 60. AS 39.52.960(12) is amended to read: 07 (12) "instrumentality of the state" means a state agency or 08 administrative unit, whether in the legislative, judicial, or executive branch, including 09 such entities as the University of Alaska, the Alaska Railroad Corporation, the 10 Alaska Airport Authority, and any public or quasi-public corporations, boards, or 11 commissions; the term includes municipalities; 12 * Sec. 61. AS 44.42.020(a)(7) is amended to read: 13 (7) manage, operate, and maintain state transportation facilities and all 14 docks, floats, breakwaters, and buildings, including all state highways, vessels, 15 railroads, pipelines, and airports [,] and aviation facilities other than airports and 16 aviation facilities managed, operated, and maintained by the Alaska Airport 17 Authority under AS 02.45; 18 * Sec. 62. AS 44.88.080(25) is amended to read: 19 (25) to make cooperative agreements with the Alaska Airport 20 Authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES], 21 acting on behalf of the international airports revenue fund established under 22 AS 37.15.430, to acquire, equip, operate, maintain, construct, or install facilities that 23 will enhance the competitiveness of the international airports under the jurisdiction 24 of the authority, including a cooperative agreement to lend amounts from the 25 international airports [AIRPORT] revenue fund to finance the development or 26 improvement of utilities serving the airports; 27 * Sec. 63. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION. (a) Real and personal state property used and controlled by the Ted 30 Stevens Anchorage International Airport or the Fairbanks International Airport on the 31 effective date of this subsection shall be transferred to the Alaska Airport Authority. Real and
01 personal state property used for airport purposes at the Cold Bay Airport on the effective date 02 of this subsection shall be transferred to the Alaska Airport Authority. 03 (b) All employees of the Department of Transportation and Public Facilities assigned 04 to the management, operation, and maintenance of the Ted Stevens Anchorage International 05 Airport, the Fairbanks International Airport, or the Cold Bay Airport on the effective date of 06 this subsection shall be transferred to the Alaska Airport Authority as employees of the 07 authority. 08 (c) Classified state employees transferred to the Alaska Airport Authority under (b) of 09 this section retain the rights and status of state employees until the expiration dates of the 10 collective bargaining agreements covering those employees that are in effect on the effective 11 date of (b) of this section. 12 (d) The Alaska Airport Authority is bound by the collective bargaining agreements 13 covering employees transferred to the authority under (b) of this section for the terms of the 14 agreements. 15 (e) Notwithstanding AS 02.45.900(a), as added by sec. 2 of this Act, and (c) and (d) 16 of this section, the Alaska Airport Authority shall operate under personnel rules adopted 17 under AS 39 until January 1, 2003, or until the authority adopts its own personnel rules under 18 AS 02.45.100(b), as added by sec. 2 of this Act, whichever occurs first. 19 * Sec. 64. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 INTERIM MANAGEMENT OF THE AIRPORTS. (a) Notwithstanding other 22 provisions of this Act, until the board of directors of the Alaska Airport Authority convenes 23 its first meeting, the commissioner of transportation and public facilities shall manage the 24 state-owned and state-operated international airports at Anchorage and Fairbanks and the 25 state-owned and state-operated airport at Cold Bay under applicable laws that are in effect on 26 the day before the effective date of sec. 1 of this Act. 27 (b) Notwithstanding AS 02.45.060, as added by sec. 2 of this Act, the commissioner 28 of transportation and public facilities is the chair pro tempore of the board of directors of the 29 Alaska Airport Authority until the board elects a chair from among its members at its first 30 meeting. 31 (c) The board of directors of the Alaska Airport Authority shall convene its first
01 meeting after appointment of at least the two members appointed under AS 02.45.020(a)(1), 02 as added by sec. 2 of this Act, the two members appointed under AS 02.45.020(a)(2), as 03 added by sec. 2 of this Act, and the member appointed under AS 02.45.020(a)(3), as added by 04 sec. 2 of this Act. 05 * Sec. 65. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 INITIAL APPOINTMENTS. (a) Notwithstanding AS 02.45.020, as added by sec. 2 08 of this Act, one person initially appointed to serve on the board of directors of the Alaska 09 Airport Authority under AS 02.45.020(a)(1) shall serve as a member of the board until 10 December 31, 2003, and the other person initially appointed to serve on the board under 11 AS 02.45.020(a)(1) shall serve as a member of the board until December 31, 2005. 12 (b) Notwithstanding AS 02.45.020, as added by sec. 2 of this Act, one person initially 13 appointed to serve on the board of directors of the Alaska Airport Authority under 14 AS 02.45.020(a)(2) shall serve as a member of the board until December 31, 2003, and the 15 other person initially appointed to serve on the board under AS 02.45.020(a)(2) shall serve as 16 a member of the board until December 31, 2005. 17 (c) Notwithstanding AS 02.45.020, as added by sec. 2 of this Act, two persons 18 initially appointed to serve on the board of directors of the Alaska Airport Authority under 19 AS 02.45.020(a)(3) or (4) shall serve as members of the board until December 31, 2004, and 20 the other person initially appointed to serve on the board under AS 02.45.020(a)(3) or (4) 21 shall serve as a member of the board until December 31, 2002. The governor shall designate 22 which initial term a person appointed under AS 02.45.020(a)(3) or (4) shall serve under this 23 subsection. 24 * Sec. 66. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 TRANSFER OF RESPONSIBILITY FOR INTERNATIONAL AIRPORTS 27 REVENUE BONDS. All rights, duties, powers, obligations, and authorities of the state bond 28 committee in regard to international airports revenue bonds under AS 37.15.410 - 37.15.550 29 are transferred to the Alaska Airport Authority. 30 * Sec. 67. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 SAVING CLAUSE. Litigation, hearings, investigations, and other proceedings 02 pending under a law amended or repealed by this Act, or in connection with functions 03 transferred by this Act, continue in effect and may be continued and completed 04 notwithstanding a transfer or amendment or repeal provided for by this Act. Regulations 05 adopted under authority of a law amended or repealed by this Act remain in effect for the term 06 adopted or until repealed or otherwise amended under the provisions of this Act. 07 * Sec. 68. AS 02.15.091, 02.15.260(13); and AS 39.25.120(c)(11) are repealed. 08 * Sec. 69. AS 37.15.550(5), 37.15.550(6), and 37.15.550(7) are repealed. 09 * Sec. 70. AS 02.45.900 and 02.45.910, as added by sec. 2 of this Act, and secs. 61, 63, and 10 68 of this Act take effect on the day on which the board of directors of the Alaska Airport 11 Authority convenes its first meeting. The commissioner of transportation and public facilities 12 shall inform the revisor of statutes and the lieutenant governor of the date on which the board 13 of directors of the Alaska Airport Authority convenes its first meeting. 14 * Sec. 71. AS 02.45.350, as added by sec. 2 of this Act, and secs. 37 - 53, 62, 66, and 69 of 15 this Act take effect on January 1 of the calendar year following the calendar year in which the 16 board of directors of the Alaska Airport Authority convenes its first meeting. The 17 commissioner of transportation and public facilities shall inform the revisor of statutes and the 18 lieutenant governor of the date on which the board of directors of the Alaska Airport 19 Authority convenes its first meeting. 20 * Sec. 72. Except as provided by secs. 70 and 71 of this Act, this Act takes effect July 1, 21 2002.