Legislature(2001 - 2002)

2001-05-04 Senate Journal

Full Journal pdf

2001-05-04                     Senate Journal                      Page 1507
SB 218                                                                                            
SENATE BILL NO. 218 "An Act relating to international airports                                      
revenue bonds and to the spending plan for the International Airports                               
Construction Fund; and providing for an effective date" was read the                                
second time.                                                                                        
                                                                                                    
Senator Cowdery, Chair, moved and asked unanimous consent for the                                   
adoption of the Transportation Committee Substitute offered on page                                 
1432. Without objection, CS FOR SENATE BILL NO. 218(TRA) was                                        
adopted and read the second time.                                                                   
                                                                                                    
Senator Pearce offered Amendment No. 1 :                                                             
                                                                                                    
Page 1, line 2, following "Fund;":                                                                
 Insert "relating to customer facility charges to fund facilities in                              
airports to be constructed without using international airport                                    
revenue bonds;"                                                                                   
                                                                                                    
                                                                                                    
                                                                                                    

2001-05-04                     Senate Journal                      Page 1508
Page 1, following line 3:                                                                           
 Insert a new bill section to read:                                                                 
   "* Section 1.  AS 02.15.090(a) is amended to read:                                             
  (a)  In operating an airport or air navigation facility owned or                                  
controlled by the state, the department may enter into contracts, leases,                           
and other arrangements covering periods not exceeding 55 years with                                 
a person, municipality, or the United States, granting the privilege of                             
using or improving an airport or air navigation facility or a portion of                            
it or space in it for commercial, governmental, or other public                                     
purposes, including private plane tie down, or conferring the privilege                             
of supplying goods, commodities, services, or facilities at an airport or                           
air navigation facility. The department may establish the terms and                                 
conditions and fix the charges, rentals, and fees for the privileges or                             
services that are reasonable and uniform for the same class of privilege                            
or service. Charges, rentals, or fees authorized by this subsection may                             
be fixed for the international airports by order of the commissioner or                             
by negotiated or competitively offered contract. However, for the                               
privilege of occupying or using a state-owned facility on an                                    
airport, which facility is or will be acquired, constructed,                                    
equipped, installed or improved with the proceeds of indebtedness,                              
the payment of which is secured solely by revenues from customer                                
facility charges, the department shall require occupants or users                               
of all or a portion of the facility to pay to the department, or shall                          
require persons under contract to occupy or use all or a portion of                             
the existing or proposed facility to charge their customers, a                                  
uniform customer facility charge stipulated by the department in                                
an amount sufficient to pay the principal of, interest on, and any                              
other cost of debt service on the indebtedness. Notwithstanding                                 
AS 37.10.050(a), the fixing of charges, rentals, or fees as permitted                               
under this subsection is not subject to the adoption of regulation                                  
provisions of AS 44.62 (Administrative Procedure Act). The terms,                                   
conditions, charges, rentals, and fees shall be established with due                                
regard to the property and improvements used and the expense of                                     
operation to the state. However, use of state land and buildings by the                             
Alaska Wing, Civil Air Patrol and its squadrons shall be permitted                                  
without rental charges. If the department permits space in state-owned                              
or state-controlled airports to be used as lounges for members of the                               
United States armed forces, the Alaska National Guard, the Alaska                                   
Naval Militia, or the Alaska State Defense Force, and if the lounges                                
are operated by persons exempt from taxation under 26 U.S.C.                                        

2001-05-04                     Senate Journal                      Page 1509
501(c)(3) (Internal Revenue Code), rent may not be charged for the                                  
use of the space. The department shall provide for public notice and an                             
opportunity to comment before a charge, rental, or fee is fixed by                                  
order of the commissioner as permitted under this subsection.  The                                  
public may not be deprived of its rightful, equal, and uniform use of                               
the airport, air navigation facility, or a portion of them."                                        
                                                                                                    
Page 1, line 4:                                                                                     
 Delete "* Section 1. "                                                                           
 Insert "* Sec. 2."                                                                               
                                                                                                    
Renumber the following bill sections accordingly.                                                   
                                                                                                    
Page 1, line 13, following "purpose":                                                               
 Insert ", excepting only proceeds of any customer facility                                     
charge set by the commissioner of transportation and public                                     
facilities under AS 02.15.090"                                                                  
                                                                                                    
Page 2, following line 20:                                                                          
 Insert new bill sections to read:                                                                  
   "* Sec. 4.  AS 37.15.430(a) is amended to read:                                                
 (a)  There is established an enterprise fund known as the                                          
"International Airports Revenue Fund," into which shall be paid all                                 
revenue, fees, charges, and rentals derived by the state from the                                   
ownership, lease, use, and operation of the airports and all of the                                 
facilities and improvements of them and facilities and improvements                                 
used in connection with them, excepting only proceeds of any                                    
customer facility charge set by the commissioner of transportation                              
and public facilities under AS 02.15.090. The revenue, charges, fees,                           
and rentals may not include the proceeds of any state tax or license.                               
The money in the revenue fund may only be used for the purpose of                                   
  (1)  paying or securing the payment of the principal of and                                       
interest on the bonds and of and on any other revenue bonds issued by                               
authorization of the legislature to provide money to acquire, equip,                                
construct, and install additions and improvements to, and extensions of                             
and facilities for, the airports, and to be payable out of the revenue                              
fund;                                                                                               
  (2)  paying the normal and necessary costs of maintaining and                                     
operating the airports and all of the improvements and facilities of                                
them;                                                                                               

2001-05-04                     Senate Journal                      Page 1510
  (3)  paying the costs of renewals, replacements, and                                              
extraordinary repairs to the airports and all of the improvements and                               
facilities of them;                                                                                 
  (4)  redeeming before their fixed maturities any and all                                          
revenue bonds issued for the purposes of the airports;                                              
  (5)  providing money to acquire, construct and install                                            
necessary additions and improvements to and extensions of and                                       
facilities for the airports and all of their facilities; and                                        
  (6)  providing money to pay any and all other costs relating to                                   
the ownership, use, and operation of the airports.                                                  
   * Sec. 5.  AS 37.15.430 is amended by adding a new subsection to                               
read:                                                                                               
 (c)  For proceeds of a customer facility charge set by the                                         
commissioner of transportation and public facilities under                                          
AS 02.15.090 but required to be charged to customers by occupants or                                
users of a facility acquired, constructed, equipped, installed, or                                  
improved with the proceeds of indebtedness incurred by a person other                               
than the state to acquire, construct, equip, install, or improve the                                
facility for state ownership,                                                                       
  (1)  the Department of Transportation and Public Facilities                                       
shall by regulation or contract require that the proceeds of the                                    
customer facility charge be remitted directly to a bond trustee                                     
designated to receive such proceeds and to pay the principal of interest                            
on, and any other cost of debt services on the indebtedness; and                                    
  (2)  such proceeds shall not be considered a revenue of the                                       
state."                                                                                             
                                                                                                    
Renumber the following bill section accordingly.                                                    
                                                                                                    
Senator Pearce moved for the adoption of Amendment No. 1.                                           
Objections were heard.                                                                              
                                                                                                    
The question being: "Shall Amendment No. 1 be adopted?" The roll                                    
was taken with the following result:                                                                
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2001-05-04                     Senate Journal                      Page 1511
                                                                                                    
CSSB 218(TRA)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  19   NAYS:  1   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Austerman, Cowdery, Davis, Donley, Ellis, Elton, Green,                                      
Halford, Hoffman, Leman, Lincoln, Olson, Pearce, Phillips, Taylor,                                  
Therriault, Torgerson, Ward, Wilken                                                                 
                                                                                                    
Nays:  Kelly                                                                                        
                                                                                                    
and so, Amendment No. 1 was adopted.                                                                
                                                                                                    
Senator Cowdery offered Title Amendment No. 2:                                                      
                                                                                                    
Page 1, line 1, following "and":                                                                  
 Delete "to"                                                                                      
 Insert  "requiring that"                                                                         
                                                                                                    
Page 1, line 2, following "Fund":                                                                 
 Insert  "include information about the amounts spent during                                      
the previous fiscal year for cost overruns on certain projects and                                
the identification of time delays on certain projects"                                            
                                                                                                    
Senator Cowdery moved for the adoption of Title Amendment No. 2.                                    
Without objection, Title Amendment No. 2 was adopted.                                               
                                                                                                    
Senator Leman moved and asked unanimous consent that the bill be                                    
considered engrossed, advanced to third reading and placed on final                                 
passage. Senator Ellis objected.                                                                    
                                                                                                    
The question being: "Shall the bill be advanced to third reading?" The                              
roll was taken with the following result:                                                           
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2001-05-04                     Senate Journal                      Page 1512
                                                                                                    
CSSB 218(TRA) am                                                                                    
Advance from Second to Third Reading?                                                               
                                                                                                    
YEAS:  14   NAYS:  6   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Austerman, Cowdery, Donley, Green, Halford, Kelly, Leman,                                    
Pearce, Phillips, Taylor, Therriault, Torgerson, Ward, Wilken                                       
                                                                                                    
Nays:  Davis, Ellis, Elton, Hoffman, Lincoln, Olson                                                 
                                                                                                    
and so, the bill failed to advance to third reading.                                                
                                                                                                    
CS FOR SENATE BILL NO. 218(TRA) am will be on the May 5                                             
calendar.