SB 235: "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. 235 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. 22 (b) The appointed members of the board described under (a) of this section 23 shall have appropriate and relevant experience in the management or operation of 24 airports or of aviation or related business enterprises, except that at least one member 25 shall be a representative of a labor organization that represents employees of the 26 authority. 27 (c) The commissioner of transportation and public facilities is a nonvoting, ex 28 officio member of the board. The commissioner may designate a person to serve on 29 the board in the commissioner's absence. 30 (d) The appointed members of the board serve for staggered terms of four 31 years. The terms of the appointed members begin on January 1.
01 (e) The appointed members of the board shall comply with the requirements of 02 AS 39.50 (public official financial disclosure). 03 (f) The appointed members of the board may neither be employed by the state, 04 including the University of Alaska, nor hold an elected state or municipal office. 05 Sec. 02.45.030. Removal of members. The governor may remove an 06 appointed member of the board for cause, including incompetence, neglect of duty, or 07 misconduct in office. Before a member is removed for cause, the member shall be 08 given a copy of the charges and afforded an opportunity to publicly present a defense 09 in person or by counsel upon not less than 10 days' notice. If a member is removed for 10 cause, the governor shall file with the lieutenant governor a complete statement of all 11 charges made against the member and the governor's findings based on the charges, 12 together with a complete record of the proceedings. The governor may suspend a 13 member of the board pending a final action under this section. 14 Sec. 02.45.040. Compensation and expenses. (a) A member of the board, 15 other than the commissioner and the commissioner's designee, is entitled to 16 compensation not to exceed $400 for each day the member is engaged in the actual 17 performance of duties as a member of the board for a maximum of 60 days in a 18 calendar year. The board may provide by rule for compensation for partial days 19 during which an appointed member is engaged in actual performance of duties as a 20 member of the board. 21 (b) In addition to compensation under (a) of this section, a member of the 22 board, other than the commissioner and the commissioner's designee, is entitled to per 23 diem and travel expenses authorized by law for state boards and commissions under 24 AS 39.20.180. 25 Sec. 02.45.050. Meetings. (a) The board shall hold at least four regular 26 meetings each year. The site of the regular meetings shall rotate between Anchorage 27 and Fairbanks. 28 (b) The board may hold special meetings at the call of the chair or at the 29 request of three members of the board. 30 Sec. 02.45.060. Officers and quorum. (a) The board shall elect a chair and a 31 vice-chair from among its members. A member of the board may not serve as chair
01 for two consecutive terms. The chairmanship of the board shall rotate among the 02 appointed members of the board. The chair and vice-chair serve for terms of two 03 years. 04 (b) The board shall elect a secretary, who need not be a member. The 05 secretary serves at the pleasure of the board. 06 (c) Four appointed members of the board constitute a quorum. Action may be 07 taken and motions and resolutions adopted by the board at a meeting by the 08 affirmative vote of at least four appointed members. Members may not vote by proxy. 09 A vacancy in the membership of the board does not impair the right of a quorum to 10 exercise all the powers and perform all the duties of the board. 11 (d) Members may participate in meetings of the board by electronic means. 12 Sec. 02.45.070. Staff. (a) The board shall employ a manager for the Ted 13 Stevens Anchorage International Airport and a manager for the Fairbanks 14 International Airport. The board may employ a manager for the Cold Bay Airport. 15 Airport managers shall be selected on the basis of education, experience, training, and 16 expertise in management of airports. Airport managers serve at the pleasure of the 17 board. Between meetings of the board, the airport managers shall report to the chair of 18 the board. 19 (b) The board shall employ officers and employees as necessary for the 20 efficient operation of the airports. 21 (c) The board may employ executive, administrative, fiscal, and legal officers 22 and employees as the board considers necessary for the efficient management of the 23 authority. The board shall seek to minimize unnecessary duplication of staff and 24 functions at airports operated by the authority. 25 Sec. 02.45.080. Rules and emergency rules. (a) The board shall adopt rules 26 to carry out its functions and the purposes of this chapter, including rules to safeguard 27 property owned by the authority and to protect employees and persons using the 28 authority's property or services. At least 15 days before the adoption of a rule, the 29 board shall give public notice of the proposed action by publishing a notice in at least 30 two newspapers of general circulation in the state and by mailing a copy of the notice 31 to each person who has requested notice of proposed changes to its rules. The notice
01 must state the time, place, and nature of the proceedings and must contain a summary 02 of the subject of the proposed rule. 03 (b) On the date and at the time and place designated in the notice required 04 under (a) of this section, the board shall provide each interested person an opportunity 05 to present statements in writing concerning the proposed rule and shall give members 06 of the public an opportunity to present oral statements for a minimum period of at least 07 one hour. 08 (c) The board shall consider all relevant matters presented to it before 09 adopting a rule. The board may take action on a rule that varies in content from the 10 summary provided with the notice of the proposed rule if the summary reflected the 11 subject of the rule in a way that provided reasonable notice to the public about whether 12 the authority's action on that subject could affect the public's interest. 13 (d) The board may adopt a rule on an emergency basis only when necessary 14 for the orderly operation of the authority's facilities or programs. The requirements of 15 (a) - (c) of this section do not apply to the adoption of an emergency rule under this 16 subsection. However, within 10 days after the adoption of an emergency rule, the 17 authority shall give notice of its action that substantially complies with the notice 18 requirements of this section. A rule adopted under this subsection remains in effect 19 for not more than 120 days. To prevent an emergency rule from lapsing, the board 20 may adopt the same rule under (a) - (c) of this section before the end of the 120-day 21 period. 22 (e) Failure to mail a notice to a person under (a) or (d) of this section does not 23 invalidate an action taken by the board. 24 (f) An interested person may challenge a rule adopted by the board by 25 bringing an action in the superior court. In addition to other grounds, a court may 26 declare a rule invalid 27 (1) for substantial failure by the authority to comply with this section; 28 or 29 (2) if the rule was adopted under (d) of this section, upon the ground 30 that the emergency rule was not necessary for the orderly operation of the authority's 31 facilities or programs.
01 Article 2. Powers and Duties. 02 Sec. 02.45.100. Powers and duties of authority. (a) In addition to other 03 powers granted in this chapter, the authority may 04 (1) sue and be sued; 05 (2) adopt and alter an official seal; 06 (3) maintain an office in the state; 07 (4) acquire, hold, use, and dispose of its money, subject to 08 appropriation by the legislature; 09 (5) acquire, hold, use, lease, rent, construct, and dispose of property for 10 its purposes; 11 (6) issue revenue bonds in the amount authorized by law; and 12 (7) do all acts necessary to carry out this chapter that are not expressly 13 prohibited by law. 14 (b) The authority shall 15 (1) operate, manage, plan, improve, market, construct, and maintain 16 the facilities of the state-owned and state-operated international airports located at 17 Anchorage and Fairbanks and of the state-owned and state-operated airport at Cold 18 Bay; and 19 (2) adopt and enforce 20 (A) bylaws of the authority establishing procedures consistent 21 with AS 02.45.080 for the adoption of rules and emergency rules; 22 (B) rules for the conduct of its business and for the use of its 23 services and facilities; 24 (C) personnel rules necessary to establish a system of personnel 25 administration substantially equivalent to the state personnel rules adopted 26 under AS 39. 27 Sec. 02.45.110. Public nature of authority activities. The planning, 28 construction, improvement, maintenance, and operation of an airport, whether by the 29 authority separately or jointly with another state agency, municipality, or person, and 30 the exercise of other powers granted to the authority are public and governmental 31 functions exercised for a public purpose and matters of public necessity. Land and
01 other property and privileges acquired and used by or on behalf of the authority for the 02 purposes enumerated in this chapter are acquired and used for public and 03 governmental purposes and as a matter of public necessity. 04 Sec. 02.45.120. Acquisition of land and easements. The authority, as part of 05 the cost of constructing, maintaining, or improving airport facilities, may acquire by 06 purchase, gift, grant, exchange, or eminent domain land in fee simple or easements 07 that the authority considers necessary for present or future public use, either temporary 08 or permanent, including easements in airport hazards or land outside the boundaries of 09 an airport, necessary to permit the removal, elimination, and obstruction marking or 10 obstruction lighting of airport hazards or to prevent the establishment of airport 11 hazards. By the same means, the authority may obtain material, including clay, 12 gravel, sand, or rock, or the land necessary to obtain the material. The authority may 13 acquire the land or material notwithstanding the fact that title to the land or material is 14 vested in the state or a department, agency, commission, or institution of the state. 15 Sec. 02.45.130. Authority to acquire property for the purpose of 16 exchange. When the authority declares that it is in the best public interest of the state 17 to do so, the authority may acquire by purchase, gift, grant, exchange, or eminent 18 domain privately or publicly owned land or an interest in land for the purpose of 19 exchanging the land or interest in land for privately or publicly owned land or an 20 interest in land that the authority is authorized by law to acquire. 21 Sec. 02.45.140. Eminent domain. (a) The authority may exercise the power 22 of eminent domain under AS 09.55.240 - 09.55.460 to acquire land for airport 23 purposes consistent with this chapter. Notwithstanding AS 09.55.250, the authority 24 may acquire a fee simple title whenever, in the judgment of the authority, ownership 25 of a fee simple title is necessary to carry out the purposes of this chapter. 26 (b) The authority may file a declaration of taking in the manner provided for 27 the state under AS 09.55.420. 28 (c) The exercise of the power of eminent domain by the authority requires the 29 prior approval of the governor. 30 Sec. 02.45.150. Indemnification. (a) If the person acted in good faith on 31 behalf of the authority and within the scope of the person's official duties or powers,
01 the authority may defend and indemnify a current or former member of the board, 02 employee, or agent of the authority against all costs, expenses, judgments, and 03 liabilities, including attorney fees, incurred by or imposed upon that person in 04 connection with a civil or criminal action in which the person is involved by affiliation 05 with the authority. 06 (b) The authority may purchase insurance to protect and hold personally 07 harmless its employees, agents, and board members from an action, claim, or 08 proceeding arising out of the performance, purported performance, or failure of 09 performance, in good faith, of duties for, or employment with, the authority and to 10 hold them harmless from expenses connected with the defense, settlement, or 11 monetary judgments from that action, claim, or proceeding. The purchase of 12 insurance is discretionary with the board, and insurance is not considered to be 13 compensation to the insured person. 14 Sec. 02.45.160. Insurance. Except as provided in AS 02.45.150(b), the 15 authority shall protect its assets, services, and employees by purchasing insurance or 16 providing for certain self-insurance retentions. The authority shall also maintain 17 casualty, property, and other insurance in amounts reasonably calculated to cover 18 potential claims against the authority or state for bodily injury, death, or disability and 19 property damage that may arise from or be related to authority operations and 20 activities. 21 Sec. 02.45.170. Fidelity bond. The authority shall obtain a fidelity bond in an 22 amount determined by the board for board members and each executive officer 23 responsible for accounts and finances. A bond must be in effect during the entire 24 tenure in office of the bonded person. 25 Article 3. Airport Facilities. 26 Sec. 02.45.200. Operation and use privileges. (a) The authority may enter 27 into contracts, leases, and other arrangements covering periods not exceeding 55 years 28 with a person, a municipality, or the United States, granting the privilege of using or 29 improving an airport or air navigation facility, a portion of an airport or air navigation 30 facility, or space in an airport or air navigation facility for commercial, governmental, 31 or other public purposes, including private plane tie down, or conferring the privilege
01 of supplying goods, commodities, services, or facilities at an airport or air navigation 02 facility. The authority may establish the terms and conditions and fix the charges, 03 rentals, and fees for the privileges or services that are reasonable and uniform for the 04 same class of privilege or service. Charges, rentals, or fees authorized by this 05 subsection may be fixed by order of the board or by negotiated or competitively 06 offered contract. However, for the privilege of occupying or using a state-owned 07 facility on an airport operated by the authority, which facility is or will be acquired, 08 constructed, equipped, installed, or improved with the proceeds of indebtedness, the 09 payment of which is secured solely by revenue from customer facility charges, the 10 authority shall require occupants or users of all or a portion of the facility to pay to the 11 authority, or shall require persons under contract to occupy or use all or a portion of 12 the existing or proposed facility to charge their customers, a uniform customer facility 13 charge stipulated by the authority in an amount sufficient to pay the principal of, 14 interest on, and any other cost of debt service on the indebtedness. The fixing of 15 charges, rentals, or fees as permitted under this subsection is not subject to 16 AS 37.10.050(a). The terms, conditions, charges, rentals, and fees shall be established 17 with due regard to the property and improvements used and the expense of operation 18 to the state. However, use of state land and buildings by the Alaska Wing-Civil Air 19 Patrol and its squadrons shall be permitted without rental charges. The authority shall 20 provide for public notice and an opportunity to comment before a charge, rental, or fee 21 is fixed by order of the board as permitted under this subsection. The public may not 22 be deprived of its rightful, equal, and uniform use of the airport, air navigation facility, 23 or a portion of the airport or air navigation facility. 24 (b) If the authority permits space in an airport to be used as lounges for 25 members of the United States armed forces, the Alaska National Guard, the Alaska 26 Naval Militia, or the Alaska State Defense Force and if the lounges are operated by 27 persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code), the 28 authority may not charge rent for the use of the space. 29 (c) The authority may, by contract or other arrangement, upon a consideration 30 fixed by the board, grant to a qualified municipality or person for a reasonable period 31 of time the privilege of operating, as agent of the state or otherwise, an airport owned
01 or controlled by the authority. A municipality or person granted that privilege may not 02 operate the airport other than as a public airport or enter into a contract, lease, or other 03 arrangement in connection with the operation that the authority may not have 04 undertaken under (a), (b), or (d) - (h) of this section. 05 (d) Notwithstanding the right of the public to rightful, equal, and uniform use 06 under (a) of this section, before the expiration of a land lease, including the 07 termination of a lease in holdover status, entered into under this section, the lessee 08 may apply for a new lease, or for an extended term under the existing lease, for the 09 same land. The board shall approve the application for a new land lease or an 10 extended term under this section without offering the land to other persons for leasing 11 if 12 (1) the lessee is in compliance with the terms and conditions of the 13 existing or holdover lease; and 14 (2) the continued use of the leasehold is consistent with written airport 15 operation policies and is in the state's best interest. 16 (e) A land lessee owns title to the permanent improvements that the lessee 17 constructed or purchased during the term of the lease, unless the lease expressly 18 provides that the state is the owner of the permanent improvements. 19 (f) At the expiration, termination, or cancellation of a land lease entered into 20 under this section, 21 (1) a lessee who owns the improvements under (e) of this section shall 22 continue to own the permanent improvements that the lessee constructed or purchased 23 on a leasehold if the lessee is granted, under (d) of this section, a new lease or an 24 extended term for the same land; 25 (2) a lessee may sell the permanent improvements owned by the lessee 26 to a succeeding lessee of the same land; 27 (3) at the option of the lessee, the permanent improvements owned by 28 the lessee may be sold by the state at public auction with the proceeds from the sale of 29 the improvements going to the lessee, less administrative costs of the auction and 30 obligations owed under the lease to the state; the successful bidder has the same right 31 to enter into a new lease under (d) of this section without the authority offering the
01 land to other persons for leasing; 02 (4) after notice by the authority, the permanent improvements owned 03 by the lessee shall be removed at the lessee's sole expense if 04 (A) the permanent improvements do not comply with written 05 airport operational policies or are not in the state's best interest; 06 (B) the permanent improvements are not sold under (2) or (3) 07 of this subsection; or 08 (C) the authority makes written findings that the permanent 09 improvements are a hazard to the public health and safety; 10 (5) title to the permanent improvements vests in the authority if the 11 authority purchases or otherwise contracts for the ownership of the permanent 12 improvements or if the lessee abandons the permanent improvements. 13 (g) The authority shall require, as a term of all aviation-related contracts, 14 leases, and other arrangements for use or occupancy of an airport operated by the 15 authority, that the parties to the contract, lease, or other arrangement, including the 16 authority, shall be required to reimburse each other according to the principles of 17 comparative fault for amounts paid others for personal injury and property damage. 18 The apportionment of liability among the parties to an agreement under this subsection 19 may not affect the rights of persons who are not parties to the agreement. 20 (h) If the authority determines that it is in the best interests of the state to 21 require that persons holding aviation-related leases, permits, or concession contracts 22 for use or occupancy of an airport operated by the authority provide insurance 23 coverage, the authority shall develop and adopt by rule guidelines for the types and 24 limits of insurance coverage required for aviation-related leases, permits, or 25 concession contracts. The authority may authorize a variation from the coverage 26 required by the rule if the authority finds in writing that the variation is necessary 27 considering the best interests of the state and the unique circumstances underlying a 28 specific aviation-related lease, permit, or concession contract. 29 Sec. 02.45.210. Sale and delivery of in-bond merchandise. (a) The 30 authority shall allow the sale and delivery of in-bond merchandise at an airport only 31 by an exclusive contract.
01 (b) If an exclusive contract for the sale and delivery of in-bond merchandise at 02 an airport exists on the effective date of this section, the authority may not permit or 03 confer a right on another person to offer to sell, sell, or deliver in-bond merchandise at 04 that airport except as provided in (c) of this section. 05 (c) After exclusive contracts described in (b) of this section expire, the 06 authority shall enter into one exclusive contract and, on its expiration, additional 07 successive exclusive contracts for the sale and delivery of in-bond merchandise at 08 each international airport operated by the authority. Except under the existing and 09 future exclusive contracts described in this section, the authority may not permit or 10 confer a right upon a person to offer to sell, sell, or deliver in-bond merchandise at an 11 airport. 12 (d) The authority shall offer the exclusive contracts required by this section by 13 competitive bid and shall award the contracts after considering the generation of 14 maximum revenue for the international airports revenue fund under AS 37.15.430. 15 (e) The authority shall actively supervise the operations under each exclusive 16 contract for the sale and delivery of in-bond merchandise in order to ensure the 17 effectiveness of the operations. To supervise contract operations under this section, 18 the authority shall adopt rules that provide for review of the reasonableness of price 19 schedules, quality, and assortment of merchandise, and customer service. 20 (f) This section does not apply to deliveries of in-bond merchandise as cargo 21 to airlines. In this subsection, "cargo" means goods carried by an airline under an 22 agreement between the shipper and the airline, other than a passenger ticket, that are 23 accepted, carried, and handled separately from passenger baggage and that are 24 delivered to a location other than a baggage claim area; "cargo" does not include 25 goods carried by an airline as baggage, whether belly-loaded or hand-carried and 26 whether accompanied or unaccompanied by a passenger. 27 Sec. 02.45.220. Police powers vested. The officers and employees of the 28 authority whom the board may designate have general police powers in aid of the 29 enforcement of this chapter and of the powers exercised by the authority under 30 AS 02.15 and AS 02.25. The persons designated under this section shall meet the 31 minimum standards for police officers adopted under AS 18.65.130 - 18.65.290.
01 Sec. 02.45.230. Regulation of ground transportation at airports. 02 Notwithstanding the provisions of AS 02.45.200, the authority may not exclude taxis, 03 buses, or limousines that carry passengers for hire or courtesy cars from the highways, 04 parking facilities, or other portions of an airport designated for operation or parking of 05 ground transportation vehicles. The authority may regulate by rule the operations of 06 taxis, buses, limousines, and courtesy cars as necessary to promote efficient operation 07 of an airport. In this section, "courtesy car" means a motor vehicle owned or operated 08 by a hotel, motel, or other place of public accommodation for the transportation of its 09 guests to and from the airport at the request of the guest and for which no service 10 charge is made to the guest. 11 Sec. 02.45.240. Liens. The authority may enforce the payment of charges for 12 repairs, improvements, storage, or care of personal property made or furnished by the 13 authority or its agents in connection with the operation of an airport or air navigation 14 facility owned or operated by the authority. The authority has those lien rights 15 generally allowed by law to secure payment for those services. 16 Sec. 02.45.250. Airport advisory committees. (a) The board shall establish 17 an advisory committee for each airport and shall prescribe by rule the powers, duties, 18 and procedures of each committee. An advisory committee serves only as an advisor 19 and may not exercise or be delegated a substantive power conferred on the board by 20 law. An advisory committee may take action by a majority vote of its members. 21 (b) The advisory committee for the Ted Stevens Anchorage International 22 Airport consists of three appointed 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 Ted 24 Stevens Anchorage International Airport. 25 (c) The advisory committee for the Fairbanks International Airport consists of 26 the three appointed members of the board chosen by the chair of the board. The 27 advisory committee shall act as an advisor to the manager of the Fairbanks 28 International Airport. 29 (d) The advisory committee for the Cold Bay Airport consists of three 30 appointed members of the board chosen by the chair of the board. The advisory 31 committee shall act as an advisor to the manager of the Cold Bay Airport.
01 Article 4. Fiscal Procedures. 02 Sec. 02.45.300. Authority program and financial plan. (a) The authority 03 shall assure the development of a system of results-based operation designed to 04 increase efficiency and effectiveness of programs and services of the authority. 05 Toward that end, the authority shall, on a semi-annual basis, identify results-based 06 measures that have been used to work toward achievement of the mission statement 07 and desired results issued by the legislature and of other goals of the authority, and set 08 out the results as measured. The authority shall also prepare information that shall be 09 compiled and submitted on December 15 each year to the office of management and 10 budget, the legislature, and the legislative finance division; this information must 11 (1) identify the mission of the authority and desired results established 12 by the legislature; 13 (2) identify the goals and objectives the authority will use to achieve 14 the legislature's mission and desired results; 15 (3) set out the results of any user-group surveys and, if the results do 16 not agree with the mission and desired results, goals, and objectives, explain why; 17 (4) include written, defined methods of measuring results that apply to 18 the responsibilities, products, and services of the authority; 19 (5) identify results-based measures that have been used to work toward 20 achievement of the mission statement and desired results issued by the legislature and 21 other goals of the authority, and set out the results as measured; 22 (6) identify surveys or other methods of gathering user-group opinions 23 that have been used by the authority to identify ways to improve its programs; 24 (7) identify methods of measuring performance when the mission 25 statement and desired results issued by the legislature involve more than one authority 26 and make recommendations to eliminate duplication of government functions and 27 waste; 28 (8) identify ways in which the authority has involved its employees in 29 the development of methods of measuring results, including opportunities for 30 employee representatives to participate in committees established to develop methods 31 of measuring results;
01 (9) include the budget requested to carry out the authority's proposed 02 plans in the succeeding fiscal year, including information reflecting the expenditures 03 during the last fiscal year, the expenditures authorized for the current fiscal year, the 04 expenditures proposed for the succeeding fiscal year, an explanation of the services to 05 be provided, the total number of positions for all persons employed or under contract 06 by the agency for personal services, including those rendered for capital improvement 07 projects, the need for the services, the cost of the services, and other information 08 requested by the office of management and budget; 09 (10) include a report of receipts of the authority during the last fiscal 10 year, an estimate of receipts during the current fiscal year, and an estimate of receipts 11 for the succeeding fiscal year; 12 (11) identify legislation required to implement the proposed programs 13 and financial plans; 14 (12) include an evaluation of the advantages and disadvantages of 15 specific alternatives to existing or proposed activities or administrative methods of the 16 authority. 17 (b) The document prepared under (a) of this section must describe the 18 relationship of the services provided by the authority to those services provided by 19 other government agencies and nongovernmental organizations. 20 (c) If the authority fails to transmit the program and financial information 21 required under (a) of this section on the specified date, the governor may prepare the 22 information. 23 (d) All goals and objectives, plans, programs, estimates, budgets, and other 24 documents forwarded to the governor by the authority under this section are public 25 information on and after the date they are forwarded. 26 (e) The authority shall, with participation of its employees, develop methods 27 for measuring authority results. A group or committee established by the authority to 28 develop methods of measuring results shall include a representative of each of the 29 bargaining units that represents employees of the authority. 30 Sec. 02.45.310. Program execution. (a) Except as limited by executive 31 decisions of the governor, the mission statements and desired results issued by the
01 legislature, appropriations by the legislature, and other provisions of law, the authority 02 has power to administer its programs and is responsible for the proper management of 03 the airports. 04 (b) The governor may direct the reduction of expenditures by the authority 05 during the fiscal year only if the governor determines that the planned expenditures 06 can no longer be made due to factors outside the control of the state that make the 07 expenditures factually impossible. 08 Sec. 02.45.320. Acceptance of money from federal and other sources. The 09 authority may accept federal money and money from other public or private sources to 10 accomplish the purposes of this chapter; however, the authority may not expend the 11 money without appropriation of the money by the legislature. Federal money accepted 12 under this chapter shall be accepted and expended by the authority under the terms and 13 conditions prescribed by federal law and regulations. 14 Sec. 02.45.330. Annual report. By January 15 of each year, the authority 15 shall submit to the governor, the legislature, the mayor of the Municipality of 16 Anchorage, the mayor of the Fairbanks North Star Borough, the mayor of the City of 17 Fairbanks, the mayor of the City of Cold Bay, and the mayor of the Aleutians East 18 Borough a concise report describing the operations, income, and expenditures for the 19 preceding fiscal year. The report must contain information substantially similar to that 20 required by the Security and Exchange Commission form 10-K. The report must also 21 include financial statements audited by an independent outside auditor. 22 Sec. 02.45.340. Annual audit. The authority shall have a certified audit of its 23 financial records prepared annually by an independent certified public accountant. 24 Sec. 02.45.350. Responsibility of authority for revenue bonds. The 25 authority succeeds to all rights, duties, powers, and obligations of the state bond 26 committee regarding the issuance, sale, and repayment of revenue bonds authorized 27 under AS 37.15.410 - 37.15.550. 28 Article 5. General Provisions. 29 Sec. 02.45.375. Authority employees. (a) Employees of the authority are not 30 employees of the state. 31 (b) Notwithstanding (a) of this section, employees of the authority who were
01 state employees the day before they were transferred to the authority shall continue to 02 participate in the supplemental employee benefits program under AS 39.30.150 - 03 39.30.180 and in the public employees' retirement system under AS 39.35. The 04 authority shall pay the employer's contributions required under AS 39.30.150 - 05 39.30.180 and under AS 39.35. 06 (c) The authority may engage in collective bargaining with its employees. 07 Sec. 02.45.380. Application of existing laws. Unless specifically provided 08 otherwise in this chapter, the following laws do not apply to the operations of the 09 authority: 10 (1) AS 36.30, except as provided in that chapter; 11 (2) AS 37.07; 12 (3) AS 39, except as provided in this chapter; 13 (4) AS 44.62.010 - 44.62.300. 14 Sec. 02.45.390. Definitions. In this chapter, unless the context requires 15 otherwise, 16 (1) "airport" means the international airports owned and operated by 17 the state and located at or near the cities of Anchorage and Fairbanks and the airport 18 owned and operated by the state at or near the City of Cold Bay; 19 (2) "authority" means the Alaska Airport Authority; 20 (3) "board" means the board of directors of the authority; 21 (4) "bonds" means the international airports revenue bonds authorized 22 by AS 37.15.410 - 37.15.550; 23 (5) "capital improvement" means a project for the construction, 24 rehabilitation, rebuilding, enlarging, or improving of an airport, as determined by the 25 authority to be necessary or desirable for efficient operation of the airports operated by 26 the authority and to best serve the public. 27 Sec. 02.45.395. Short title. This chapter may be cited as the Alaska Airport 28 Authority Act. 29 * Sec. 3. AS 02.15.010 is amended to read: 30 Sec. 02.15.010. Purpose. The purpose of this chapter is to 31 [(1) REPEALED
01 (2)] encourage and develop aeronautics and the establishment and 02 operation of a state system of airports through cooperation among the department, 03 the authority, and [WITH] municipalities, and otherwise, including cooperation with 04 the federal government and acceptance and utilization of federal funds allotted for this 05 purpose. 06 * Sec. 4. AS 02.15.020(b) is amended to read: 07 (b) The department may enter into contracts necessary or advisable to the 08 execution of the powers granted to the department [IT] by this chapter. Where the 09 planning, acquisition, construction, improvement, maintenance, or operation of an 10 airport or air navigation facility subject to the jurisdiction of the department is 11 financed wholly or partially with federal money, the department, as agent of the state, 12 or of a municipality, or person, may let contracts in the manner prescribed by the 13 federal authorities acting under the laws and [RULES AND] regulations of the United 14 States. 15 * Sec. 5. AS 02.15.060 is amended to read: 16 Sec. 02.15.060. Establishment, operation, and maintenance. Except as 17 otherwise provided under this title, the [THE] department may plan, establish, 18 construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police 19 airports and air navigation facilities within the state. 20 * Sec. 6. AS 02.15.070(a) 21 (a) For the purposes specified in AS 02.15.060, the department may, by 22 purchase, gift, devise, lease, condemnation, or otherwise, acquire real or personal 23 property, or any interest in the property including easements in airport hazards or land 24 outside the boundaries of an airport or airport site, necessary to permit the removal, 25 elimination, obstruction-marking, or obstruction-lighting of airport hazards, or to 26 prevent the establishment of airport hazards. The department may acquire existing 27 airports and air navigation facilities in the same manner except it may not acquire or 28 take over an airport or air navigation facility owned or controlled by the authority, a 29 municipality, or a person without the consent of the authority, municipality or person. 30 is amended to read: 31 * Sec. 7. AS 02.15.090(a) is amended to read:
01 (a) In operating an airport or air navigation facility owned or controlled by the 02 state and subject to the jurisdiction of the department, the department may enter 03 into contracts, leases, and other arrangements covering periods not exceeding 55 years 04 with a person, a municipality, or the United States, granting the privilege of using or 05 improving an airport or air navigation facility, [OR] a portion of an airport or air 06 navigation facility, [IT] or space in an airport or air navigation facility [IT] for 07 commercial, governmental, or other public purposes, including private plane tie down, 08 or conferring the privilege of supplying goods, commodities, services, or facilities at 09 an airport or air navigation facility. The department may establish the terms and 10 conditions and fix the charges, rentals, and fees for the privileges or services that are 11 reasonable and uniform for the same class of privilege or service. [CHARGES, 12 RENTALS, OR FEES AUTHORIZED BY THIS SUBSECTION MAY BE FIXED 13 FOR THE INTERNATIONAL AIRPORTS BY ORDER OF THE COMMISSIONER 14 OR BY NEGOTIATED OR COMPETITIVELY OFFERED CONTRACT.] 15 However, for the privilege of occupying or using a state-owned facility on an airport, 16 which facility is or will be acquired, constructed, equipped, installed, or improved 17 with the proceeds of indebtedness, the payment of which is secured solely by revenues 18 from customer facility charges, the department shall require occupants or users of all 19 or a portion of the facility to pay to the department, or shall require persons under 20 contract to occupy or use all or a portion of the existing or proposed facility to charge 21 their customers, a uniform customer facility charge stipulated by the department in an 22 amount sufficient to pay the principal of, interest on, and any other cost of debt service 23 on the indebtedness. Notwithstanding AS 37.10.050(a), the fixing of charges, rentals, 24 or fees as permitted under this subsection is not subject to the adoption of regulation 25 provisions of AS 44.62 (Administrative Procedure Act). The terms, conditions, 26 charges, rentals, and fees shall be established with due regard to the property and 27 improvements used and the expense of operation to the state. However, use of state 28 land and buildings by the Alaska Wing, Civil Air Patrol and its squadrons shall be 29 permitted without rental charges. If the department permits space in state-owned or 30 state-controlled airports that are subject to the jurisdiction of the department to be 31 used as lounges for members of the United States armed forces, the Alaska National
01 Guard, the Alaska Naval Militia, or the Alaska State Defense Force, and if the lounges 02 are operated by persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 03 Revenue Code), rent may not be charged for the use of the space. The department 04 shall provide for public notice and an opportunity to comment before a charge, rental, 05 or fee is fixed by order of the commissioner as permitted under this subsection. The 06 public may not be deprived of its rightful, equal, and uniform use of the airport, air 07 navigation facility, or a portion of them. 08 * Sec. 8. AS 02.15.090(b) is amended to read: 09 (b) The department may by contract or other arrangement, upon a 10 consideration fixed by the department [IT], grant to a qualified municipality or 11 person for a reasonable period of time the privilege of operating, as agent of the state 12 or otherwise, an airport owned or controlled by the state and subject to the 13 jurisdiction of the department. A municipality or person granted that privilege may 14 not operate the airport other than as a public airport or enter into a contract, lease, or 15 other arrangement in connection with the operation that the department may not have 16 undertaken under (a) or (c) - (e) of this section. 17 * Sec. 9. AS 02.15.090(d) is amended to read: 18 (d) A [LAND] lessee of land under this section owns title to the permanent 19 improvements that the lessee constructed or purchased during the term of the lease, 20 unless the lease expressly provides that the state is the owner of the permanent 21 improvements. 22 * Sec. 10. AS 02.15.090(f) is amended to read: 23 (f) The department shall require as a term of all aviation-related contracts, 24 leases, and other arrangements for use or occupancy of an airport operated by the 25 department [, INCLUDING THE INTERNATIONAL AIRPORTS,] that the parties to 26 the contract, lease, or other arrangement, including the department, shall be required to 27 reimburse each other according to the principles of comparative fault for amounts paid 28 others for personal injury and property damage. The apportionment of liability among 29 the parties to an agreement under this subsection may not affect the rights of persons 30 who are not parties to the agreement. 31 * Sec. 11. AS 02.15.090(g) is amended to read:
01 (g) If the department determines that it is in the best interests of the state to 02 require that persons holding aviation-related leases, permits, or concession contracts 03 for use or occupancy of an airport operated by the department [, INCLUDING 04 INTERNATIONAL AIRPORTS,] provide insurance coverage, the department shall 05 develop and adopt by regulation guidelines for the types and limits of insurance 06 coverage required for aviation-related leases, permits, or concession contracts. The 07 department may authorize a variation from the coverage required by the regulation if 08 the department finds in writing that the variation is necessary considering the best 09 interests of the state and the unique circumstances underlying a specific aviation- 10 related lease, permit, or concession contract. 11 * Sec. 12. AS 02.15.095 is amended to read: 12 Sec. 02.15.095. Courtesy cars. Notwithstanding the provisions of 13 AS 02.15.090(a), in operating an airport subject to the jurisdiction of the 14 department, the department may not exclude from the streets, roads, highways, 15 parking facilities, or other portions of the [A STATE-OPERATED] airport designated 16 for operation or parking of ground transportation vehicles, nor may the department 17 prohibit from picking up and discharging passengers [,] those motor vehicles 18 commonly known as "courtesy cars." In this section, "courtesy cars" means motor 19 vehicles ["] owned or operated by hotels, motels, or other similar places of public 20 accommodation for the transportation of their guests to and from the airport at the 21 request of the guest and for which service no charge is made to the guest. 22 * Sec. 13. AS 02.15.100 is amended to read: 23 Sec. 02.15.100. Liens. The department may enforce the payment of any 24 charges for repairs, improvements, storage, or care of personal property made or 25 furnished by the department or its agents [,] in connection with the operation of an 26 airport or air navigation facility owned or operated by the state and subject to the 27 jurisdiction of the department. The state has those lien rights generally allowed by 28 law to secure payment for those services. 29 * Sec. 14. AS 02.15.102 is amended to read: 30 Sec. 02.15.102. Use of airports for utilities. (a) A utility facility may be 31 constructed, placed, or maintained across, along, over, under, or within
01 (1) a state airport, subject to the jurisdiction of the department, only 02 [IN ACCORDANCE WITH] regulations adopted or procedures prescribed by the 03 department and only if authorized by a written permit issued by the department; 04 (2) a state airport, subject to the jurisdiction of the authority 05 under AS 02.45, only under rules adopted by the authority and only if authorized 06 by written permit issued by the authority. 07 (b) The department or the authority may charge a fee for a permit that it 08 issues [ISSUED] under this section. 09 * Sec. 15. AS 02.15.104 is amended to read: 10 Sec. 02.15.104. Relocation of utility facilities incident to airport projects. 11 (a) If, incident to the construction of an airport project, the department or authority 12 determines and orders that a utility facility located across, along, over, under, or within 13 a state airport subject to its jurisdiction must be changed, relocated, or removed, the 14 utility owning or maintaining the facility shall change, relocate, or remove the facility 15 [IT] in accordance with the order, within a reasonable time set by the department or 16 authority in the order. 17 (b) If the utility facility is not changed, relocated, or removed in accordance 18 with the order, a permit authorizing the facility issued by the department or the 19 authority under AS 02.15.102 becomes invalid, and the facility will be considered an 20 unauthorized encroachment subject to the provisions of AS 02.15.114. 21 (c) The cost of change, relocation, or removal, as defined in AS 02.15.260, 22 ordered under (a) of this section is to be paid as follows: 23 (1) by the department or the authority as a cost of airport construction 24 [,] if the utility facility is installed or authorized after June 11, 1986, under a utility 25 permit or a regulation adopted by the department and is installed in the location 26 specified in the permit or the regulation; 27 (2) by the department or the authority as a cost of airport construction 28 [,] if the utility facility was installed before June 11, 1986, under a utility permit or 29 utility easement and is in the location specified in the permit or easement; 30 (3) by the department or the authority as a cost of airport construction 31 [,] if the utility facility was installed before the location became part of a state airport
01 or before permits were required; 02 (4) by the department or the authority as a cost of airport construction 03 [,] if the utility permit that requires the utility to pay the relocation cost was issued 04 more than five years before the contract for the airport construction project was first 05 advertised; 06 (5) by the utility in all other cases unless 07 (A) for airports subject to the jurisdiction of the 08 department, the commissioner finds it is in the public interest for the cost to 09 be paid by the department; 10 (B) for airports subject to the jurisdiction of the authority, 11 the board of directors of the authority finds that it is in the public interest 12 for the cost to be paid by the authority. 13 * Sec. 16. AS 02.15.106 is amended to read: 14 Sec. 02.15.106. Encroachment permits. An encroachment may be 15 constructed, placed, changed, or maintained across or within an airport, but only in 16 accordance with regulations or procedures adopted by the department for airports 17 subject to the jurisdiction of the department or with rules adopted by the 18 authority for airports subject to the jurisdiction of the authority. An 19 encroachment may not be constructed, placed, maintained, or changed until the 20 encroachment [IT] is authorized by a written permit issued by the department or the 21 authority, unless the department or the authority provides otherwise by regulation 22 or rule. The department or the authority may charge a fee for a permit that it issues 23 [ISSUED] under this section. 24 * Sec. 17. AS 02.15.108 is amended to read: 25 Sec. 02.15.108. Relocation or removal of encroachment. If, incidental to 26 the construction or maintenance of a state airport, the department or the authority 27 determines and orders that an encroachment previously authorized by written permit 28 must be changed, relocated, or removed, the owner of the encroachment shall change, 29 relocate, or remove the encroachment [IT] within a reasonable time set by the 30 department or the authority in the order. The cost of the change, relocation, or 31 removal shall be paid as provided in AS 02.15.104(c). If the owner does not change,
01 relocate, or remove an encroachment within the time set by the department or the 02 authority, the encroachment will be considered an unauthorized encroachment subject 03 to the provisions of AS 02.15.114. 04 * Sec. 18. AS 02.15.110 is amended to read: 05 Sec. 02.15.110. Unauthorized encroachments. If an unauthorized 06 encroachment exists in, on, under, or over a state airport, the department or the 07 authority, as appropriate, may require the removal of the encroachment, at the 08 expense of the owner, in the manner provided in AS 02.15.112 - 02.15.114. 09 * Sec. 19. AS 02.15.112 is amended to read: 10 Sec. 02.15.112. Notice of removal of unauthorized encroachment. The 11 department or the authority, as appropriate, shall give notice to [NOTICE 12 SHALL BE GIVEN] the owner, occupant, or person in possession of an unauthorized 13 encroachment, or to another person causing or permitting the encroachment to exist, 14 by serving upon any of them a notice demanding the removal of the encroachment 15 within a time limit set by the department or the authority. The notice must describe 16 the encroachment with reasonable certainty as to its character and location. Service of 17 the notice may be made by certified mail. 18 * Sec. 20. AS 02.15.114 is amended to read: 19 Sec. 02.15.114. Removal at owner's expense after noncompliance; removal 20 expense. After a failure of the owner of an unauthorized encroachment to comply 21 with a notice or order of the department or the authority under AS 02.15.104, 22 02.15.108, or 02.15.112, the department or the authority, as appropriate, may 23 remove the encroachment, or cause the encroachment [IT] to be removed. The 24 owner of the unauthorized encroachment shall pay to the department or the authority 25 (1) the expense of the removal of the encroachment; 26 (2) all costs and expenses paid by the state as a result of a claim or 27 claims filed against the state by third parties for damages due to delays because the 28 encroachment was not changed, removed, or relocated according to the order of the 29 department or the authority; and 30 (3) costs and expense of suit. 31 * Sec. 21. AS 02.15.120 is amended to read:
01 Sec. 02.15.120. Assistance to construct, enlarge, or improve air navigation 02 facilities. The department may match available funds with those of the authority, 03 municipalities, federal agencies, or other state agencies, for project costs relating to the 04 construction, enlargement, or improvement of airports. The department may assist 05 persons in the construction, enlargement, and improvement of airports and air 06 navigation facilities. The airports and facilities, until they are abandoned as such, 07 shall be at all times available for the use of and accessible to the general public, and 08 maintained as public airports and facilities. 09 * Sec. 22. AS 02.15.130 is amended to read: 10 Sec. 02.15.130. Assistance to the authority, the federal government, 11 municipalities, and other persons. The department may make available its 12 engineering, maintenance, and other services, with or without charge, to the 13 authority, the federal government, [OR TO] a municipality, or a person in connection 14 with the planning, acquisition, construction, improvement, maintenance, or operation 15 of airports or air navigation facilities. 16 * Sec. 23. AS 02.15.210 is amended to read: 17 Sec. 02.15.210. Exclusive rights prohibited. The department may not grant 18 an exclusive right for the use of an airway, airport, or air navigation facility under its 19 jurisdiction. This section does not prevent the making of contracts, leases, and other 20 arrangements under AS 02.15.060 - 02.15.100 and 02.15.120, including exclusive 21 contracts for the sale and delivery of in-bond merchandise [DESCRIBED IN 22 AS 02.15.091]. 23 * Sec. 24. AS 02.15.260 is amended by adding a new paragraph to read: 24 (18) "authority" means the Alaska Airport Authority. 25 * Sec. 25. AS 02.25.110(4) is amended to read: 26 (4) "department" means the Department of Transportation and Public 27 Facilities with regard to airports that are not subject to AS 02.45 and the Alaska 28 Airport Authority with regard to airports that are subject to AS 02.45; 29 * Sec. 26. AS 02.25.110 is amended by adding a new paragraph to read: 30 (8) "regulation" includes rules adopted by the board of directors of the 31 Alaska Airport Authority.
01 * Sec. 27. AS 18.65.290(6) is amended to read: 02 (6) "police officer" means 03 (A) a full-time employee of the state or a municipal police 04 department with the authority to arrest and issue citations; detain a person 05 taken into custody until that person can be arraigned before a judge or 06 magistrate; conduct investigations of violations of and enforce criminal laws, 07 regulations, and traffic laws; search with or without a warrant persons, 08 dwellings, and other forms of property for evidence of a crime; and take other 09 action consistent with exercise of these enumerated powers when necessary to 10 maintain the public peace; 11 (B) an officer or employee of the Alaska Airport Authority 12 [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES] 13 who is stationed at an international airport and has been designated to have the 14 general police powers authorized under AS 02.45.220 [AS 02.15.230(a)]; 15 (C) a University of Alaska public safety officer with general 16 police powers authorized under AS 14.40.043; 17 * Sec. 28. AS 19.10.270 is amended by adding a new subsection to read: 18 (d) In this section, 19 (1) "commissioner" means the commissioner of transportation and 20 public facilities with regard to airports not subject to AS 02.45 and the board of 21 directors of the Alaska Airport Authority with regard to airports subject to AS 02.45; 22 (2) "regulation" includes a rule adopted by the board of directors of the 23 Alaska Airport Authority. 24 * Sec. 29. AS 23.10.037(b) is amended to read: 25 (b) The provisions of (a) of this section do not apply to the state or a political 26 subdivision of the state when dealing with police officers in its employ or with persons 27 applying to be employed as police officers. In this subsection, "police officers" 28 includes officers and employees of the Alaska Airport Authority [DEPARTMENT 29 OF TRANSPORTATION AND PUBLIC FACILITIES] who are stationed at an 30 [INTERNATIONAL] airport operated by the authority and have been designated to 31 have the general police powers authorized under AS 02.45.220 [AS 02.15.230(a)].
01 * Sec. 30. AS 35.27 is amended by adding a new section to read: 02 Sec. 35.27.025. Application to the Alaska Airport Authority. This chapter 03 applies to the Alaska Airport Authority. Compliance with this chapter is the sole 04 responsibility of the Alaska Airport Authority with regard to the public buildings and 05 facilities of the authority. 06 * Sec. 31. AS 35.27.030(1) is amended to read: 07 (1) "building" or "facility" means a permanent improvement 08 constructed by the department or the Alaska Airport Authority; the term 09 (A) includes [, BUT IS NOT LIMITED TO,] 10 (i) schools, office buildings, and court buildings; 11 (ii) other buildings that [WHICH] the commissioner 12 determines are designed for substantial public use; 13 (iii) boats and vessels of the marine highway system; 14 (iv) transportation facilities that [WHICH] 15 accommodate traveling passengers; 16 (B) excludes other transportation facilities; 17 * Sec. 32. AS 36.10.180(a) is amended to read: 18 (a) The preferences established in AS 36.10.150 - 36.10.175 apply to work 19 performed 20 (1) under a contract for construction, repair, preliminary surveys, 21 engineering studies, consulting, maintenance work, or any other retention of services 22 necessary to complete a given project that is let by the state or an agency of the state, a 23 department, office, state board, commission, public corporation, or other 24 organizational unit of or created under the executive, legislative, or judicial branch of 25 state government, including the University of Alaska, the Alaska Airport Authority, 26 and the Alaska Railroad Corporation, or by a political subdivision of the state 27 including a regional school board with respect to an educational facility under 28 AS 14.11.020; 29 (2) on a public works project under a grant to a municipality under 30 AS 37.05.315 or AS 37.06.010; 31 (3) on a public works project under a grant to a named recipient under
01 AS 37.05.316; 02 (4) on a public works project under a grant to an unincorporated 03 community under AS 37.05.317 or AS 37.06.020; and 04 (5) on any other public works project or construction project that is 05 funded in whole or in part by state money. 06 * Sec. 33. AS 36.30.015(e) is amended to read: 07 (e) The board of directors of the Alaska Railroad Corporation, the board of 08 directors of the Alaska Airport Authority, and the board of directors of the Alaska 09 Aerospace Development Corporation shall adopt procedures to govern the 10 procurement of supplies, services, professional services, and construction. The 11 procedures must be substantially equivalent to the procedures prescribed in this 12 chapter and in regulations adopted under this chapter. Notwithstanding the other 13 provisions of this subsection, the Alaska Railroad Corporation, the Alaska Airport 14 Authority, and the Alaska Aerospace Development Corporation shall comply with 15 AS 36.30.170(b), and, when the Department of Transportation and Public Facilities 16 authorizes the Alaska Railroad Corporation to perform construction work instead of 17 the Department of Transportation and Public Facilities, the Alaska Railroad 18 Corporation shall use competitive sealed bidding or competitive sealed proposals 19 under AS 36.30.100 - 36.30.270 to procure the supplies, services, professional 20 services, and construction services necessary for the work and, to ensure the state 21 obtains the lowest cost for the project, may submit a bid or proposal for the work. 22 * Sec. 34. AS 36.30.050(c) is amended to read: 23 (c) The lists may be used by the chief procurement officer or an agency when 24 issuing invitations to bid or requests for proposals under this chapter. The lists may be 25 used by the legislative council, the court system, the Alaska Airport Authority, and 26 the Alaska Railroad Corporation. 27 * Sec. 35. AS 36.30.850(b)(8) is amended to read: 28 (8) acquisitions or disposals of property and other contracts relating to 29 airports under AS 02.15.070, 02.15.090, AS 02.45.120, 02.45.200, 02.45.210 30 [02.15.091], and AS 44.88; 31 * Sec. 36. AS 36.30.990(1) is amended to read:
01 (1) "agency" 02 (A) means a department, institution, board, commission, 03 division, authority, public corporation, the Alaska Pioneers' Home, or other 04 administrative unit of the executive branch of state government; 05 (B) does not include 06 (i) the University of Alaska; 07 (ii) the Alaska Railroad Corporation; 08 (iii) the Alaska Housing Finance Corporation; 09 (iv) a regional Native housing authority created under 10 AS 18.55.996 or a regional electrical authority created under 11 AS 18.57.020; 12 (v) the Department of Transportation and Public 13 Facilities, in regard to the repair, maintenance, and reconstruction of 14 vessels, docking facilities, and passenger and vehicle transfer facilities 15 of the Alaska marine highway system; 16 (vi) the Alaska Aerospace Development Corporation; 17 (vii) the Alaska State Pension Investment Board; 18 (viii) the Alaska Seafood Marketing Institute; 19 (ix) the Alaska Airport Authority; 20 * Sec. 37. AS 37.05 is amended by adding a new section to article 1 to read: 21 Sec. 37.05.055. Delegation to the Alaska Airport Authority. The 22 commissioner of administration may delegate the performance of the functions under 23 this chapter as they relate to the Alaska Airport Authority to the authority and set the 24 criteria and guidelines that shall be followed. 25 * Sec. 38. AS 37.15.415 is amended to read: 26 Sec. 37.15.415. Continuing revenue bond debt service appropriation. The 27 amounts required annually to pay the principal, interest, and redemption premium on 28 all issued and outstanding international airports revenue bonds of the state are 29 appropriated each fiscal year from the international airports revenue fund to the board 30 [STATE BOND COMMITTEE] to make all required payments of principal, interest, 31 and redemption premium.
01 * Sec. 39. AS 37.15.420(b) is amended to read: 02 (b) The bond resolution may provide for the investment of money in the 03 construction fund in a manner that the board [COMMITTEE] may determine. The 04 interest earned upon or any profits derived from the sale of this investment shall be 05 deposited in and become a part of the construction fund. 06 * Sec. 40. AS 37.15.420(c) is amended to read: 07 (c) By January 1 of each year, the board [COMMISSIONER OF 08 TRANSPORTATION AND PUBLIC FACILITIES] shall submit to the legislature an 09 annual spending plan that contains information regarding the planned expenditure of 10 money from the construction fund during the next fiscal year and information on 11 certain expenditures made during the previous fiscal year. The spending plan must 12 include 13 (1) the total amount of money to be spent from the construction fund; 14 (2) a description of the work to be performed on airport facilities that 15 will be financed with money from the construction fund; 16 (3) the amount from the construction fund that will be spent under 17 contracts with the private sector and a description of the goods or services to be 18 provided to the state under each of the contracts; 19 (4) the amounts that the state will spend from the construction fund for 20 purposes other than contract payments and a description of each of those purposes, 21 including financing costs, administrative and other overhead costs, and contingencies; 22 (5) the amounts spent during the previous fiscal year for cost overruns 23 on projects financed in whole or part with money from the construction fund and the 24 sources of money used for those cost overruns; 25 (6) identification of time delays that occurred during the previous 26 fiscal year on projects financed in whole or part with money from the construction 27 fund and amounts spent as a result of the delays. 28 * Sec. 41. AS 37.15.430(b) is amended to read: 29 (b) The investment of money in the revenue fund may be made in the manner 30 that the board [COMMITTEE] may determine. The interest earned upon or any 31 profits derived from the sale of this investment shall be deposited in and become a part
01 of the revenue fund. 02 * Sec. 42. AS 37.15.430(c) is amended to read: 03 (c) For proceeds of a customer facility charge set by the board under 04 AS 02.45.200 [COMMISSIONER OF TRANSPORTATION AND PUBLIC 05 FACILITIES UNDER AS 02.15.090] but required to be charged to customers by 06 occupants or users of a facility acquired, constructed, equipped, installed, or improved 07 with the proceeds of indebtedness incurred by a person other than the state to acquire, 08 construct, equip, install, or improve the facility for state ownership, 09 (1) the board [DEPARTMENT OF TRANSPORTATION AND 10 PUBLIC FACILITIES] shall by rule [REGULATION] or contract require that the 11 proceeds of the customer facility charge be remitted directly to a bond trustee 12 designated to receive such proceeds and to pay the principal of or interest on, and any 13 other cost of debt services on, the indebtedness; and 14 (2) such proceeds may not be considered a revenue of the state. 15 * Sec. 43. AS 37.15.440 is amended to read: 16 Sec. 37.15.440. Redemption fund. There is another special fund of the state, 17 known as the "International Airports Revenue Bond Redemption Fund," that 18 [WHICH] is a trust fund for paying and securing the payment of the principal of and 19 interest and redemption premium, if any, on the bonds and that [WHICH] shall be at 20 all times completely segregated and set apart from all other funds of the state. The 21 board [COMMITTEE], on behalf of the state, shall obligate and bind the state to set 22 aside and pay into the bond redemption fund any part or parts of, or all of, or a fixed 23 proportion of, or a fixed amount of the money in the revenue fund sufficient to pay the 24 principal of and interest and redemption premium, if any, on the bonds as the 25 payments become due and, if the board [IT] considers it necessary, to set aside and 26 maintain reserves for this purpose. The bond redemption fund shall be drawn upon for 27 the purpose of paying the principal of and interest and redemption premium, if any, on 28 the bonds, and the bonds do not constitute a general obligation of the state. 29 * Sec. 44. AS 37.15.450(a) is amended to read: 30 (a) The bonds may be sold at public or private sale in the manner, in the 31 amounts or series, and at the time or times that the board [COMMITTEE] determines.
01 However, the bonds, or each series of bonds [THEM], shall be sold at such a price so 02 that the effective interest rate over the life of the bonds does not exceed 11 percent a 03 [PER] year or that rate of interest that is 125 percent of the rate of the Bond Buyer 04 Index of 20 Municipal Bond Average Yields for the week previous to the date of sale 05 of the bonds, whichever is higher. Interest shall be payable annually or semiannually. 06 * Sec. 45. AS 37.15.450(b) is amended to read: 07 (b) The bonds mature at the time or times fixed by the board [COMMITTEE]. 08 The bonds may be subject to redemption before their fixed maturities as determined by 09 the board [COMMITTEE] and with a premium or premiums fixed by the board 10 [COMMITTEE], but a bond is not subject to redemption before its fixed maturity date 11 unless the right so to redeem that bond is expressly mentioned on the face of the bond. 12 The bonds may be in denominations determined by the board [COMMITTEE]; may 13 be issued in coupon form or in fully registered form, and may be registrable as to 14 principal or both principal and interest, all under rules [REGULATIONS] and 15 conditions that the board [COMMITTEE] shall provide; shall be payable as to 16 principal and interest at a [SUCH] place or places as may be determined by the board 17 [COMMITTEE]; shall be signed on behalf of the state by the governor and shall be 18 attested by the lieutenant governor, both of which signatures may be facsimile 19 signatures; shall have the seal of the state impressed, printed, or lithographed on them, 20 and each of the interest coupons attached to them shall be signed by the facsimile 21 signatures of these officials; shall be issued under and subject to the [SUCH] terms, 22 conditions, and covenants providing for the payment of the principal of them and 23 interest on them and [SUCH] other terms, conditions, covenants, and protective 24 features safeguarding this payment and relating to the maintenance, operation, and 25 improvement of the airports as found necessary by the board [COMMITTEE], which 26 covenants may include a provision requiring the setting aside and maintenance of 27 certain reserves to secure the payment of this principal and interest. The board 28 [COMMITTEE] may provide that any additional bonds authorized after June 27, 29 1972, by the legislature to be payable out of the same source or sources as the bonds 30 authorized as of that date may later be issued on a parity with the bonds authorized as 31 of that date upon compliance with any conditions that [WHICH] the board
01 [COMMITTEE] may prescribe. 02 * Sec. 46. AS 37.15.450(c) is amended to read: 03 (c) If found reasonably necessary, the board [COMMITTEE] may select a 04 trustee or trustees for the holders of the bonds or any series of them, for the 05 safeguarding and disbursement of any of the money in any of the funds created by 06 AS 37.15.420, 37.15.430, and 37.15.440, or for duties with respect to the 07 authentication, delivery, and registration of the bonds as the board [COMMITTEE] 08 may determine, and shall fix the rights, duties, powers, and obligations of the trustee 09 or trustees. 10 * Sec. 47. AS 37.15.450(d) is amended to read: 11 (d) In its determination of all of the matters and questions relating to the 12 issuance and sale of the bonds and the fixing of the maturities, terms, conditions, and 13 covenants of the bonds [THEM] as provided in (a), (b), and (c) of this section, the 14 decisions of the board [COMMITTEE] shall be those found to be reasonably 15 necessary for the best interests of the state and its inhabitants, and those that will 16 accomplish the most advantageous sale of the bonds, with due regard, however, to 17 necessary or normal costs of maintenance and operation, renewals, and replacements 18 of and repairs to the airports and to all improvements to them and facilities of them 19 owned, used, operated, or leased in connection with them, the future growth and 20 expansion of the airports and all of the [SUCH] facilities, and the possibility of 21 additional revenue bond financing for airports purposes. Any such decisions of the 22 board [COMMITTEE], as expressed in any bond resolution, are final and conclusive 23 when any bonds have been issued under [PURSUANT TO] the bond resolution. 24 * Sec. 48. AS 37.15.460 is amended to read: 25 Sec. 37.15.460. Bond resolution. The board [COMMITTEE] shall adopt the 26 bond resolution and prepare all other documents and proceedings necessary for the 27 issuance, sale and delivery of the bonds or any part or series of the bonds [THEM]. 28 The bond resolution must fix the principal amount, denomination, date, maturities, 29 place or places of payment, rights of redemption, if any, terms, form, conditions and 30 covenants of the bonds or each series of the bonds [THEM]. The board 31 [COMMITTEE] shall also determine and provide for the date and manner of sale of
01 the bonds, and shall provide whether the notice of sale is to be published elsewhere in 02 addition to the publication required by AS 37.15.450. 03 * Sec. 49. AS 37.15.480 is amended to read: 04 Sec. 37.15.480. Amounts required for payments. The board 05 [COMMITTEE] shall, before December 31 of each year, commencing with the year in 06 which the bonds are issued, certify [TO THE COMMISSIONERS OF REVENUE 07 AND TRANSPORTATION AND PUBLIC FACILITIES] the amounts required in the 08 next ensuing calendar year by the bond resolution or resolutions to be paid out of the 09 revenue fund into the bond redemption fund and to be paid into and maintained in any 10 reserve fund or account or any other fund or account created by the bond resolution or 11 resolutions, and shall also certify [TO THE COMMISSIONERS] the last date or dates 12 upon which payments may be made. 13 * Sec. 50. AS 37.15.500 is amended to read: 14 Sec. 37.15.500. Airport charges. As provided in AS 02.45.200, the board 15 [AS 02.15.090(a), THE COMMISSIONER OF TRANSPORTATION AND PUBLIC 16 FACILITIES] shall fix and collect the fees, charges, and rentals derived by the state 17 from the ownership, lease, use, and operation of the airports and all of the facilities 18 and improvements that will provide revenue sufficient to comply with all of the 19 covenants of the bond resolution. 20 * Sec. 51. AS 37.15.510 is amended to read: 21 Sec. 37.15.510. State improvements to airports. The state is authorized to 22 acquire, equip, construct, and install additions and improvements to and extensions of 23 the airports, facilities for the landing, parking, loading, storing, repairing, safety, and 24 utility of aircraft at the airports and passenger, freight, and terminal facilities, 25 including safety equipment and devices at the airports, found to be necessary by the 26 board [COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES]. 27 * Sec. 52. AS 37.15.520(a) is amended to read: 28 (a) The bonds or any part of them may be refunded at or before their maturity 29 by the issuance of refunding revenue bonds of the state if, in the opinion of the board, 30 [COMMITTEE] refunding is advantageous to and in the best interests of the state and 31 its inhabitants.
01 * Sec. 53. AS 37.15.520(b) is amended to read: 02 (b) The issuance of refunding bonds need not be authorized by an Act of the 03 legislature, and the board [COMMITTEE] shall adopt the resolution or resolutions 04 and prepare all other documents and proceedings necessary for the issuance, exchange 05 or sale, and delivery of the [SUCH] bonds. All provisions of AS 37.15.410 - 06 37.15.550 applicable to revenue bonds are applicable to the refunding bonds and to the 07 issuance, sale, or exchange of them, except as otherwise provided in this section. 08 * Sec. 54. AS 37.15.550(3) is amended to read: 09 (3) "bond resolution" means the resolution or resolutions authorizing 10 the issuance of bonds, adopted by the board [COMMITTEE] under AS 37.15.460; 11 * Sec. 55. AS 37.15.550 is amended by adding a new paragraph to read: 12 (10) "board" means the board of directors of the Alaska Airport 13 Authority, or any other committee, body, department, or officer of the state that 14 succeeds to the rights, powers, duties, and obligations of the board by Act of the 15 legislature. 16 * Sec. 56. AS 38.05.030(b) is amended to read: 17 (b) The provisions of this chapter do not apply to any power, duty, or authority 18 now or in the future granted to the Department of Transportation and Public Facilities 19 or the Alaska Airport Authority in the name of the state, to acquire, use, lease, 20 dispose of, or exchange real property, or any interest in real property. Land assigned 21 by the division of lands to the Department of Transportation and Public Facilities or 22 the Alaska Airport Authority shall be returned to the management of the division of 23 lands when the land [IT] is no longer needed for the purposes assigned. 24 * Sec. 57. AS 38.05.030 is amended by adding a new subsection to read: 25 (h) Except for land that is required to be returned to the department under (b) 26 of this section, the Alaska Airport Authority may dispose of real property (1) acquired 27 by the authority under AS 02.45.120, or (2) acquired by the Department of 28 Transportation and Public Facilities under AS 02.15.070 and transferred to the 29 authority under provisions of the Act creating the authority. Land conveyed under this 30 section to a municipality for less than fair market value shall be credited against the 31 municipality's entitlement under AS 29.65.
01 * Sec. 58. AS 39.35 is amended by adding a new section to read: 02 Sec. 39.35.152. Alaska Airport Authority employees. (a) An employee of 03 the Alaska Airport Authority who was an employee of the state on the day before the 04 employee was transferred to the authority under sec. 65 of this Act shall be included in 05 the system. 06 (b) An employee of the Alaska Airport Authority who is not covered under (a) 07 of this section shall be included in the system on the effective date of the authority's 08 participation in the system for that employee. 09 * Sec. 59. AS 39.50.200(b) is amended by adding a new paragraph to read: 10 (58) Alaska Airport Authority (AS 02.45.010). 11 * Sec. 60. AS 39.52.960(2) is amended to read: 12 (2) "agency" means a department, the office of the governor, or an 13 entity in the executive branch, including but not limited to the University of Alaska, 14 public or quasi-public corporations, boards or commissions, [AND] the Alaska 15 Railroad Corporation, and the Alaska Airport Authority; 16 * Sec. 61. AS 39.52.960(4) is amended to read: 17 (4) "board or commission" means a board, commission, authority, or 18 board of directors of a public or quasi-public corporation, established by statute in the 19 executive branch, including the Alaska Railroad Corporation and the Alaska 20 Airport Authority, but excluding members of a negotiated regulation making 21 committee under AS 44.62.710 - 44.62.800; 22 * Sec. 62. AS 39.52.960(12) is amended to read: 23 (12) "instrumentality of the state" means a state agency or 24 administrative unit, whether in the legislative, judicial, or executive branch, including 25 such entities as the University of Alaska, the Alaska Railroad Corporation, the 26 Alaska Airport Authority, and any public or quasi-public corporations, boards, or 27 commissions; the term includes municipalities; 28 * Sec. 63. AS 44.42.020(a)(7) is amended to read: 29 (7) manage, operate, and maintain state transportation facilities and all 30 docks, floats, breakwaters, and buildings, including all state highways, vessels, 31 railroads, pipelines, and airports [,] and aviation facilities other than airports and
01 aviation facilities managed, operated, and maintained by the Alaska Airport 02 Authority under AS 02.45; 03 * Sec. 64. AS 44.88.080(25) is amended to read: 04 (25) to make cooperative agreements with the Alaska Airport 05 Authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES], 06 acting on behalf of the international airports revenue fund established under 07 AS 37.15.430, to acquire, equip, operate, maintain, construct, or install facilities that 08 will enhance the competitiveness of the international airports under the jurisdiction 09 of the authority, including a cooperative agreement to lend amounts from the 10 international airports [AIRPORT] revenue fund to finance the development or 11 improvement of utilities serving the airports; 12 * Sec. 65. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION. (a) Real and personal state property used and controlled by the Ted 15 Stevens Anchorage International Airport or the Fairbanks International Airport on the 16 effective date of this subsection shall be transferred to the Alaska Airport Authority. Real and 17 personal state property used for airport purposes at the Cold Bay Airport on the effective date 18 of this subsection shall be transferred to the Alaska Airport Authority. 19 (b) All employees of the Department of Transportation and Public Facilities assigned 20 to the management, operation, and maintenance of the Ted Stevens Anchorage International 21 Airport, the Fairbanks International Airport, or the Cold Bay Airport on the effective date of 22 this subsection shall be transferred to the Alaska Airport Authority as employees of the 23 authority. 24 (c) Classified state employees transferred to the Alaska Airport Authority under (b) of 25 this section retain the rights and status of state employees until the expiration dates of the 26 collective bargaining agreements covering those employees that are in effect on the effective 27 date of (b) of this section. 28 (d) The Alaska Airport Authority is bound by the collective bargaining agreements 29 covering employees transferred to the authority under (b) of this section for the terms of the 30 agreements. 31 (e) Notwithstanding AS 02.45.375(a), as added by sec. 2 of this Act, and (c) and (d)
01 of this section, the Alaska Airport Authority shall operate under personnel rules adopted 02 under AS 39 until January 1, 2005, or until the authority adopts its own personnel rules under 03 AS 02.45.100(b), as added by sec. 2 of this Act, whichever occurs first. 04 * Sec. 66. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 INTERIM MANAGEMENT OF THE AIRPORTS. (a) Notwithstanding other 07 provisions of this Act, until the board of directors of the Alaska Airport Authority convenes 08 its first meeting, the commissioner of transportation and public facilities shall manage the 09 state-owned and state-operated international airports at Anchorage and Fairbanks and the 10 state-owned and state-operated airport at Cold Bay under applicable laws that are in effect on 11 the day before the effective date of sec. 1 of this Act. 12 (b) Notwithstanding AS 02.45.060, as added by sec. 2 of this Act, the commissioner 13 of transportation and public facilities is the chair pro tempore of the board of directors of the 14 Alaska Airport Authority until the board elects a chair from among its members at its first 15 meeting. 16 (c) The board of directors of the Alaska Airport Authority shall convene its first 17 meeting after appointment of at least five members of the board by the governor. 18 * Sec. 67. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 INITIAL APPOINTMENTS. Notwithstanding AS 02.45.020, as added by sec. 2 of 21 this Act, and AS 39.05.055, the governor shall appoint the initial members of the board of 22 directors of the Alaska Airport Authority to terms as follows: 23 (1) one member to a term of one year; 24 (2) two members to terms of two years; 25 (3) two members to terms of three years; 26 (4) two members to terms of four years. 27 * Sec. 68. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSFER OF RESPONSIBILITY FOR INTERNATIONAL AIRPORTS 30 REVENUE BONDS. All rights, duties, powers, obligations, and authorities of the state bond 31 committee in regard to international airports revenue bonds under AS 37.15.410 - 37.15.550
01 are transferred to the Alaska Airport Authority. 02 * Sec. 69. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 SAVING CLAUSE. Litigation, hearings, investigations, and other proceedings 05 pending under a law amended or repealed by this Act, or in connection with functions 06 transferred by this Act, continue in effect and may be continued and completed 07 notwithstanding a transfer or amendment or repeal provided for by this Act. Regulations 08 adopted under authority of a law amended or repealed by this Act remain in effect for the term 09 adopted or until repealed or otherwise amended under the provisions of this Act. 10 * Sec. 70. AS 02.15.091, 02.15.260(13); and AS 39.25.120(c)(11) are repealed. 11 * Sec. 71. AS 37.15.550(5), 37.15.550(6), and 37.15.550(7) are repealed. 12 * Sec. 72. AS 02.45.375 and 02.45.380, as added by sec. 2 of this Act, and secs. 63, 65, and 13 70 of this Act take effect on the day on which the board of directors of the Alaska Airport 14 Authority convenes its first meeting. The commissioner of transportation and public facilities 15 shall inform the revisor of statutes and the lieutenant governor of the date on which the board 16 of directors of the Alaska Airport Authority convenes its first meeting. 17 * Sec. 73. AS 02.45.350, as added by sec. 2 of this Act, and secs. 38 - 55, 64, 68, and 71 of 18 this Act take effect on January 1 of the calendar year following the calendar year in which the 19 board of directors of the Alaska Airport Authority convenes its first meeting. The 20 commissioner of transportation and public facilities shall inform the revisor of statutes and the 21 lieutenant governor of the date on which the board of directors of the Alaska Airport 22 Authority convenes its first meeting. 23 * Sec. 74. Except as provided by secs. 72 and 73 of this Act, this Act takes effect July 1, 24 2004.