txt

SCS CSHB 115(FIN): "An Act relating to charges paid or collected by users or occupants of an airport facility owned or controlled by the state; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 115(FIN) 01 "An Act relating to charges paid or collected by users or occupants of an airport facility 02 owned or controlled by the state; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 02.15.090(a) is amended to read: 05 (a) In operating an airport or air navigation facility owned or controlled by the 06 state, the department may enter into contracts, leases, and other arrangements covering 07 periods not exceeding 55 years with a person, municipality, or the United States, 08 granting the privilege of using or improving an airport or air navigation facility or a 09 portion of it or space in it for commercial, governmental, or other public purposes, 10 including private plane tie down, or conferring the privilege of supplying goods, 11 commodities, services, or facilities at an airport or air navigation facility. The 12 department may establish the terms and conditions and fix the charges, rentals, and 13 fees for the privileges or services that are reasonable and uniform for the same class of 14 privilege or service. Charges, rentals, or fees authorized by this subsection may be

01 fixed for the international airports by order of the commissioner or by negotiated or 02 competitively offered contract. [HOWEVER, FOR THE PRIVILEGE OF 03 OCCUPYING OR USING A STATE-OWNED FACILITY ON AN AIRPORT, 04 WHICH FACILITY IS OR WILL BE ACQUIRED, CONSTRUCTED, EQUIPPED, 05 INSTALLED, OR IMPROVED WITH THE PROCEEDS OF INDEBTEDNESS, 06 THE PAYMENT OF WHICH IS SECURED SOLELY BY REVENUES FROM 07 CUSTOMER FACILITY CHARGES, THE DEPARTMENT SHALL REQUIRE 08 OCCUPANTS OR USERS OF ALL OR A PORTION OF THE FACILITY TO PAY 09 TO THE DEPARTMENT, OR SHALL REQUIRE PERSONS UNDER CONTRACT 10 TO OCCUPY OR USE ALL OR A PORTION OF THE EXISTING OR PROPOSED 11 FACILITY TO CHARGE THEIR CUSTOMERS, A UNIFORM CUSTOMER 12 FACILITY CHARGE STIPULATED BY THE DEPARTMENT IN AN AMOUNT 13 SUFFICIENT TO PAY THE PRINCIPAL OF, INTEREST ON, AND ANY OTHER 14 COST OF DEBT SERVICE ON THE INDEBTEDNESS.] Notwithstanding 15 AS 37.10.050(a), the fixing of charges, rentals, or fees as permitted under this 16 subsection is not subject to the adoption of regulation provisions of AS 44.62 17 (Administrative Procedure Act). The terms, conditions, charges, rentals, and fees shall 18 be established with due regard to the property and improvements used and the expense 19 of operation to the state. However, use of state land and buildings by the Alaska 20 Wing, Civil Air Patrol and its squadrons shall be permitted without rental charges. If 21 the department permits space in state-owned or state-controlled airports to be used as 22 lounges for members of the United States armed forces, the Alaska National Guard, 23 the Alaska Naval Militia, or the Alaska State Defense Force, and if the lounges are 24 operated by persons exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 25 Revenue Code), rent may not be charged for the use of the space. The department 26 shall provide for public notice and an opportunity to comment before a charge, rental, 27 or fee is fixed by order of the commissioner as permitted under this subsection. The 28 public may not be deprived of its rightful, equal, and uniform use of the airport, air 29 navigation facility, or a portion of them. 30 * Sec. 2. AS 02.15.090 is amended by adding new subsections to read: 31 (h) For the privilege of occupying or using a state-owned facility on an airport,

01 which facility is or will be acquired, constructed, equipped, installed, or improved 02 with the proceeds of indebtedness, the payment of which, with approval of the 03 commissioner, is or will be secured solely by proceeds from customer facility charges, 04 the department may require all persons under contract to occupy or use all or a portion 05 of the planned facility, and shall require occupants or users of all or a portion of the 06 facility, to collect from their customers a uniform customer facility charge and remit 07 the proceeds to (1) the department if the state on behalf of the department incurred the 08 indebtedness; or (2) a trustee or another third party bound to use the proceeds for the 09 principal, interest, reserves, and any other applicable requirements of the indebtedness 10 documentation if the state on behalf of the department did not incur the indebtedness. 11 The commissioner shall set the customer facility charge at an amount projected to 12 generate proceeds sufficient to satisfy all requirements established by the indebtedness 13 documentation, including payment of principal and interest on the indebtedness, 14 maintenance of any reserves, and satisfaction of any other requirement of the 15 indebtedness documentation. The commissioner shall periodically adjust the amount 16 of the customer facility charge to reflect changes in the amounts necessary to pay the 17 principal and interest on the indebtedness, to maintain any required reserves, and to 18 satisfy all other requirements established by the indebtedness documentation and to 19 reflect changes in the number of occupants, users, or customers of the facility. The 20 proceeds of the customer facility charge are not revenue of the state securing any other 21 indebtedness. The commissioner may impose charges authorized by this subsection 22 for the international airports by order or by negotiated or competitively offered 23 contract. The department shall provide for public notice and an opportunity to 24 comment before a charge is set by order of the commissioner under this subsection. 25 Notwithstanding AS 37.10.050(a), the setting of charges under this subsection is not 26 subject to the adoption of regulation provisions of AS 44.62 (Administrative 27 Procedure Act). 28 (i) In addition to requiring collection of a customer facility charge to be 29 applied as described in (h) of this section, the department may require occupants or 30 users of, or persons under contract to occupy or use, all or a portion of a state-owned 31 facility on an airport, which facility is or will be acquired, constructed, equipped,

01 installed, or improved with the proceeds of indebtedness, the payment of which is 02 secured solely by proceeds of a customer facility charge, to collect from their 03 customers a uniform customer facility maintenance charge and to remit the proceeds 04 to (1) the department if the state on behalf of the department incurred the 05 indebtedness; or (2) a trustee or another third party if the state on behalf of the 06 department did not incur the indebtedness. The commissioner shall set the customer 07 facility maintenance charge at an amount projected to generate proceeds sufficient to 08 pay some or all, as determined by the commissioner, of the costs, fees, and expenses 09 required to operate and maintain the facility, including costs of insurance and 10 maintenance of reserves for the facility. The commissioner shall periodically adjust 11 the amount of the customer facility maintenance charge to reflect changes in costs, 12 fees, and expenses to operate and maintain the facility, including costs of insurance 13 and maintenance of reserves for the facility and to reflect changes in the number of 14 occupants, users, or customers of the facility. If the proceeds of the customer facility 15 maintenance charge are remitted to a trustee or another third party as set out in this 16 subsection, the proceeds of the customer facility maintenance charge are not, unless 17 otherwise contractually required, revenue of the state securing any indebtedness. The 18 commissioner may impose charges authorized by this subsection for the international 19 airports by order or by negotiated or competitively offered contract. The department 20 shall provide for public notice and an opportunity to comment before a charge is set by 21 order of the commissioner under this subsection. Notwithstanding AS 37.10.050(a), 22 the setting of charges under this subsection is not subject to the adoption of regulation 23 provisions of AS 44.62 (Administrative Procedure Act). 24 * Sec. 3. AS 37.15.410 is amended to read: 25 Sec. 37.15.410. Bond authorization. For the purpose of providing part or all 26 of the money to be used, with or without any grants or other money that may become 27 available, the issuance and sale of revenue bonds of the state in a total principal sum 28 not to exceed $524,500,000 is authorized to acquire, equip, construct, and install the 29 additions, improvements, extensions, and facilities authorized in AS 37.15.510. The 30 principal of and interest on these bonds shall be paid out of and secured by the gross 31 revenue derived by the state from the ownership, lease, use, and operation of the

01 airports, and of all the facilities of them, and out of any other money that may be 02 appropriated for the purpose, excepting only proceeds of any customer facility charge, 03 and unless otherwise contractually required any customer facility maintenance 04 charge, set by the commissioner of transportation and public facilities under 05 AS 02.15.090. 06 * Sec. 4. AS 37.15.430(a) is amended to read: 07 (a) There is established an enterprise fund known as the "International 08 Airports Revenue Fund," into which shall be paid all revenue, fees, charges, and 09 rentals derived by the state from the ownership, lease, use, and operation of the 10 airports and all of the facilities and improvements of them and facilities and 11 improvements used in connection with them, excepting only proceeds of any customer 12 facility charge, and unless otherwise contractually required any customer facility 13 maintenance charge, set by the commissioner of transportation and public facilities 14 under AS 02.15.090. The revenue, charges, fees, and rentals may not include the 15 proceeds of any state tax or license. The money in the revenue fund may only be used 16 for the purpose of 17 (1) paying or securing the payment of the principal of and interest on 18 the bonds and of and on any other revenue bonds issued by authorization of the 19 legislature to provide money to acquire, equip, construct, and install additions and 20 improvements to, and extensions of and facilities for, the airports, and to be payable 21 out of the revenue fund; 22 (2) paying the normal and necessary costs of maintaining and 23 operating the airports and all of the improvements and facilities of them; 24 (3) paying the costs of renewals, replacements, and extraordinary 25 repairs to the airports and all of the improvements and facilities of them; 26 (4) redeeming before their fixed maturities any and all revenue bonds 27 issued for the purposes of the airports; 28 (5) providing money to acquire, construct, and install necessary 29 additions and improvements to and extensions of and facilities for the airports and all 30 of their facilities; and 31 (6) providing money to pay any and all other costs relating to the

01 ownership, use, and operation of the airports. 02 * Sec. 5. AS 37.15.430(c) is amended to read: 03 (c) For proceeds of a customer facility charge set by the commissioner of 04 transportation and public facilities under AS 02.15.090 but required to be collected 05 from [CHARGED TO] customers by occupants or users of, or persons under 06 contract to occupy or use, all or a portion of a facility that is or will be acquired, 07 constructed, equipped, installed, or improved for state ownership with the proceeds 08 of indebtedness incurred [BY A PERSON] other than by the state on behalf of the 09 Department of Transportation and Public Facilities [TO ACQUIRE, 10 CONSTRUCT, EQUIP, INSTALL, OR IMPROVE THE FACILITY FOR STATE 11 OWNERSHIP], 12 (1) the Department of Transportation and Public Facilities shall by 13 regulation or contract require that the proceeds of the customer facility charge be 14 remitted directly to a [BOND] trustee or another third party designated to receive 15 the [SUCH] proceeds and to use the proceeds as provided under AS 02.15.090(h) 16 [PAY THE PRINCIPAL OF OR INTEREST ON, AND ANY OTHER COST OF 17 DEBT SERVICES ON, THE INDEBTEDNESS]; and 18 (2) the [SUCH] proceeds are [MAY] not [BE CONSIDERED A] 19 revenue of the state securing any indebtedness other than the indebtedness 20 described in AS 02.15.090(h). 21 * Sec. 6. AS 37.15.430(d) is amended by adding a new subsection to read: 22 (d) For proceeds of a customer facility maintenance charge set by the 23 commissioner of transportation and public facilities under AS 02.15.090 but required 24 to be collected from customers by occupants or users of, or persons under contract to 25 occupy or use, all or a portion of a facility that is or will be acquired, constructed, 26 equipped, installed, or improved with proceeds of indebtedness incurred other than by 27 the state on behalf of the Department of Transportation and Public Facilities, 28 (1) the Department of Transportation and Public Facilities shall by 29 regulation or contract require that the proceeds of the customer facility maintenance 30 charge be remitted directly to a trustee or another third party designated to receive the 31 proceeds and to pay some or all of the costs, fees, and expenses as determined by the

01 commissioner of transportation and public facilities under AS 02.15.090(i); and 02 (2) the proceeds are not, unless otherwise contractually required, 03 revenue of the state securing any indebtedness. 04 * Sec. 7. AS 43.52.099(1) is amended to read: 05 (1) "fees and costs" means all charges incurred by the renter before the 06 tax imposed under this chapter except 07 (A) fees from the sale of automobile liability insurance, loss 08 damage waiver insurance, and personal accident insurance; 09 (B) parking tickets; 10 (C) sales or excise taxes; 11 (D) payment for damages to the vehicle during the rental 12 period; [AND] 13 (E) concession fees paid to an airport; 14 (F) customer facility charges set by the commissioner of 15 transportation and public facilities under AS 02.15.090; and 16 (G) customer facility maintenance charges set by the 17 commissioner of transportation and public facilities under AS 02.15.090; 18 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).