Bill Text: AZ HB2324 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: Grand Canyon airport special district
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-01-20 - Referred to House TI Committee [HB2324 Detail]
Download: Arizona-2010-HB2324-Introduced.html
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REFERENCE TITLE: Grand Canyon airport special district |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2324 |
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Introduced by Representatives Chabin: Mason, Senator Pierce S
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AN ACT
amending sections 28-8242, 28-8412, 28-8415, 28-8419, 28-8420, 28-8423 and 28-8425, Arizona Revised Statutes; amending title 48, Arizona Revised Statutes, by adding chapter 39; relating to the grand canyon airport special district.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-8242, Arizona Revised Statutes, is amended to read:
28-8242. Powers and duties
A. The department:
1. Shall cooperate with all state, local and federal organizations to encourage and advance the safe and orderly development of aviation in this state.
2. May:
(a) Assemble and distribute to the public information relating to aviation, landing fields, navigational aids and other matters pertaining to aviation.
(b) Accept, in the name of this state, federal monies made available for the advancement of aviation.
(c) Represent this state on issues of routing structures and rate schedules concerning commercial airline traffic.
(d) Accept and receive federal and other public or private monies for the acquisition, construction, enlargement, improvement, maintenance, equipment or operation of airports and other air navigation facilities and sites for air navigation facilities or for any other purpose authorized by this section. The department shall deposit, pursuant to sections 35‑146 and 35‑147, these monies in the state aviation fund.
(e) Facilitate the development of a regional airport.
(f) Loan monies from the state aviation fund to an airport authority that enters into an agreement with the United States for an airport development project if the airport authority designates in its agreement with the United States that payment of federal participating monies shall be made to the department acting as the agent of the airport authority and enters into an agreement with the department appointing the department as agent of the airport authority to receive all federal participating monies. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all monies received pursuant to this subdivision in the state aviation fund. For the purposes of this subdivision, "airport authority" means the governing body of a public airport operating pursuant to sections 28‑8423 and 28‑8424 or a joint powers airport authority.
B. Notwithstanding section 38‑623, the director may authorize personnel of the department to use rental aircraft in the performance of their duties at the prevailing hourly rate. The rental fee is a charge against monies appropriated for in‑state and out‑of‑state travel.
C. The director shall adopt rules as necessary to administer this article and articles 1, 3, 4 and 5 of this chapter and to promote public safety and the best interests of aviation in this state. The rules shall not supersede or conflict with rules of the United States government agencies having jurisdiction over aviation activities in this state.
D. The director shall:
1. Contract for the operation of state owned airports.
2. In conjunction with local authorities, plan, build and develop airports, airport terminals and other related navigational facilities.
3. Operate and maintain the Grand Canyon national park airport located in the Kaibab national forest, Coconino county.
Sec. 2. Section 28-8412, Arizona Revised Statutes, is amended to read:
28-8412. Airports; public purpose
Lands that are acquired, owned, controlled or occupied by the department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district or a city, town or county for the purposes prescribed in section 28‑8411 are for a public purpose and for a public necessity.
Sec. 3. Section 28-8415, Arizona Revised Statutes, is amended to read:
28-8415. Real property interests; airport purposes
A. The department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district or a city, town or county may accept and hold real property or any interest in the property by gift, trust or purchase or any other manner for the purpose of establishing, constructing, operating or maintaining airports or for uses incidental to these purposes, subject to terms and agreements of the governing body.
B. Real property or any interest in the property held by the department in the operation and maintenance of the Grand Canyon national park airport shall be held in the name of this state.
Sec. 4. Section 28-8419, Arizona Revised Statutes, is amended to read:
28-8419. Airport rules, fees and charges; limitation
A. The department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district and the governing body of a city or town or the board of supervisors of a county may adopt rules ordinances and establish fees or charges for use of airport facilities.
B. The governing body of a city or town or the board of supervisors of a county may authorize an officer, board or body of the city, town or county to adopt rules and establish fees and charges, subject to approval by the governing body before the fees and charges are effective.
C. This section does not:
1. Authorize the governing body of a city or town or the board of supervisors of a county to restrict or limit the length or width of an airstrip or runway used for the landing and takeoff of aircraft, and any such restriction or limitation is void.
2. Affect the zoning authority of counties, cities or towns pursuant to other provisions of law.
Sec. 5. Section 28-8420, Arizona Revised Statutes, is amended to read:
28-8420. Agreements; joint airport operations
The department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district or a city, town or county may enter into agreements on terms the director or the governing body deems advisable with agencies of the United States or with a person, firm or corporation engaged in the air transportation industry for the establishment, construction, operation or maintenance of airports and incidental uses either by the department Grand Canyon airport special district, by the city, town or county or by the other contracting party.
Sec. 6. Section 28-8423, Arizona Revised Statutes, is amended to read:
28-8423. Airport land lease; nonprofit corporation
A. If the department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district or if a city, town or county has leased or leases land owned by it to a nonprofit corporation for airport or air terminal purposes pursuant to a lease agreement that provides that title to all buildings, structures and additions made or added to the leased premises by the nonprofit corporation vests in the state special district, city, town or county in the manner and subject to the restrictions contained in the agreement, the agreement as it exists or as it may be amended, renewed or extended is binding and effective pursuant to its terms.
B. An amendment, renewal or extension to the agreement is binding and effective if the agreement complies with section 28‑8425, subsection A, paragraph 1 whether or not:
1. It resulted or results in a renewal or extension of the original term in excess of twenty‑five years.
2. Any bidding, notice or other requirements of section 28‑8425 have or have not been met.
C. If a lease between the department special district and a nonprofit corporation for the operation and maintenance of the Grand Canyon national park airport is terminated, the department may spend any airport revenues, including both those unexpended and unencumbered revenues returned by the lessee and those revenues received after the termination of the lease for the operation of the airport, until the airport is leased to another nonprofit corporation or for the remainder of the then current biennial budget cycle, whichever occurs first.
Sec. 7. Section 28-8425, Arizona Revised Statutes, is amended to read:
28-8425. Lease authority; airport or air terminal purposes
A. The department, in the operation and maintenance of the Grand Canyon national park airport, Grand Canyon airport special district or a city, town or county may lease land owned by it or under its control to a person, partnership, association or corporation for airport or air terminal purposes pursuant to a lease agreement that:
1. Provides that title to all buildings, structures and improvements added to the leased premises by the lessee vests in the department district, city, town or county in the manner and subject to the restrictions contained in the lease.
2. As it exists or as it may be amended, is declared to be binding and effective pursuant to its terms.
3. Is for a term of not more than forty years and may contain an option to renew the lease for an additional period of not more than forty years.
4. Is let to the highest and best bidder.
B. In a county with a population of less than four hundred thousand persons or a city or town with a population of less than forty thousand persons, as determined by the most recent United States decennial census or the most recent special census as provided in section 28‑6532, during the lease period, the department district or a city, town or county may extend the existing lease for airport or airport terminal purposes with a person, partnership, association, corporation or political subdivision for an additional period of not more than forty years after notice and a public hearing. The department district or a city, town or county shall:
1. Publish a notice of intent to consider an extension of the lease twice in a daily or weekly newspaper of general circulation in the county. The notice shall contain the name of the lessee, a description of the leased property, the current expiration date of the lease, the amount of time the lease is proposed to be extended and the date, time and place of the public hearing on the extension request.
2. Publish the first notice not more than thirty days before the date set for the public hearing.
3. Post a copy of the notice of the intent to extend the lease on the leasehold site and at five public places in the county.
4. Hold a public hearing on the extension request.
5. Grant the extension of an existing lease only if the department district or a city, town or county determines that the extension request is in the best interest of the state district, city, town or county and on a majority vote of the governing body acting on the request for an extension.
6. Grant a second and any subsequent extension request pursuant to this subsection only after bids are received that comply with subsections A and C of this section.
C. A notice of intent to lease land under this section shall be advertised twice in a daily or weekly newspaper of general circulation in the county. The first notice shall be published at least thirty days but not more than sixty days before the date set for the submission of bids. The department district or a city, town or county may also publish the notice in any other newspaper that the department district or city, town or county determines appropriate.
D. This section does not limit the application of section 28‑8423.
E. This section does not apply to a joint powers airport authority formed pursuant to article 8 of this chapter.
Sec.|8. Title 48, Arizona Revised Statutes, is amended by adding chapter 39, to read:
CHAPTER 39
GRAND CANYON AIRPORT SPECIAL DISTRICT
ARTICLE 1. GENERAL PROVISIONS
48-6801. Grand Canyon airport special district
A. The Grand Canyon airport special district is established.
B. The district shall own and operate the Grand Canyon national park airport located in the Kaibab national forest, Coconino county.
C. The airport shall be used solely for the purposes of operating a public use airport.
48-6802. Board of directors
A. The Grand Canyon airport special district board of directors is established consisting of the members of the state transportation board established by section 28-302.
B. Members are not eligible to receive compensation but are eligible for reimbursement of necessary expenses as otherwise provided by law.
C. The board may meet when necessary at any place in this state. The board shall hold other regular meetings as it determines necessary. The chairperson may call special meetings with the concurrence of at least two members.
48-6803. Powers and duties of the board of directors
A. Acting through its board of directors, the Grand Canyon airport special district may:
1. Own, operate and maintain property and facilities related to aviation, air navigation and aerospace.
2. Own and lease property and facilities that are not related to aviation, air navigation and aerospace.
3. Prescribe user fees and charges, including transaction privilege taxes.
4. Operate facilities and construct improvements.
5. Engage employees and consultants.
6. Enter into agreements with this state, any political subdivision of this state or the federal government.
7. Adopt annual operating budgets.
8. Borrow money and issue revenue and refunding bonds.
9. Sue and be sued.
10. Exercise incidental powers if necessary to the exercise of the powers prescribed in this chapter and for the operation of the airport and the district.
B. The board of directors shall:
1. Establish and keep current an airport master plan.
2. On or before December 1 of each year, submit a written certified audit report to the speaker of the house of representatives, the president of the senate and the governor. The board of directors shall provide a copy of the report to the secretary of state. The report shall describe the financial activities of the Grand Canyon airport special district in accordance with generally accepted accounting principles.
3.||Establish policies and guide the development or modification of the transportation facilities construction program for the airport, award all construction contracts for airport facilities and monitor the status of these construction projects.
48-6804. Grand Canyon airport special district classification
On its formation, the Grand Canyon airport special district is all of the following:
1.||A special purpose district for purposes of article IX, section 19, Constitution of Arizona.
2.||A tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona.
3.||A municipal corporation for all purposes, including the purposes of title 35, chapter 3, articles 3.2, 3.3, 4, 5 and 7.
48-6805. Annual operating budget
Before June 1, the Grand Canyon airport special district's board of directors shall adopt an annual operating budget for the airport special district for the next fiscal year. Before the determination by the airport special district board of directors as to the amount of the budget that may require an increase in airport user fees and charges, including transaction privilege taxes, the airport special district board of directors shall take into account all revenues and fees of the airport and other monies legally available to fund the operations of the airport and airport authority.
48-6806. Operating budget source; public hearing; reuse, development and capital improvement plans
A. The source of the Grand Canyon airport special district's operating budget is airport user fees and charges, including transaction privilege taxes.
B. The Grand Canyon airport special district board of directors shall hold a public hearing on both:
1. The question of whether to approve and adopt the annual operating budget of the airport special district.
2. The method of funding the annual budget.
C. Notice of a public hearing held pursuant to this section shall be given in a newspaper of general circulation in the county in which the airport is located at least once a week for two weeks before the hearing.
D. The airport special district shall adopt and periodically amend a reuse and development plan and a capital improvements plan. Expenditures for or by the airport special district shall be both:
1. Consistent with the airport master plan and other plans prescribed in this chapter.
2. Limited to those items that directly relate to or benefit the operation and development of the airport and the airport special district.
48-6807. Financing authority
A. Property, facilities or projects to be constructed or acquired by the Grand Canyon airport special district may be financed from any source, including proceeds from the issuance by the airport special district of revenue bonds in the manner described in this article.
B. Bonds issued by the airport special district are not outstanding obligations of the airport special district until the bonds are issued and delivered.
48-6808. Revenue bonds; fees and charges
A. The board of directors of the Grand Canyon airport special district may pass a resolution to issue and sell airport special district revenue bonds.
B. If the revenue bonds are to be sold in a public offering, bonds may not be issued by the airport special district unless the bonds receive one of the four highest investment grade ratings by a nationally recognized bond rating agency.
C. The board of directors of the airport special district may pledge to the payment of its revenue bonds any revenues of the airport in trust for the airport special district and returned to the airport special district.
D. The airport special district shall prescribe fees and charges including a transaction privilege tax and shall revise them as necessary to generate revenue sufficient to pay when due the principal and interest of all revenue bonds for the payment of which revenue has been pledged. The annual operating budget adopted by the airport special district shall identify the establishment or revision of any fees and charges.
E. If in the resolution of the board of directors of the airport special district the revenues to be pledged are limited to certain types of revenues, only those types of revenues may be pledged and only those revenues must be maintained.
F. A holder of the revenue bonds issued under this section shall not compel either:
1. Any exercise of the taxing power of the airport special district, if any.
2. This state to pay the bonds or the interest on the bonds.
G. Revenue bonds issued under this section are not a debt of the airport special district or the board of directors of the airport special district, and the payment of the revenue bonds is not enforceable out of any monies other than the revenue pledged to the payment of the bonds.
48-6809. Refunding bonds
The airport special district may issue and sell refunding bonds to refund any airport special district revenue bonds.
48-6810. Bond terms
A. With respect to bonds issued pursuant to this article, the board of directors of the Grand Canyon airport special district shall:
1. Prescribe the denominations of the bonds, the size of each issue and the form of the bonds.
2. Establish the maturities, interest payment dates and interest rates, whether fixed or variable, not exceeding the maximum rate stated in the resolution of the board of directors of the airport special district.
B. The bonds may contain terms, conditions, covenants and agreements as the board of directors of the airport special district deems proper.
C. The bonds may be sold by competitive bid or negotiated sale for public or private offering at, below or above par. If the bonds are sold below par, the aggregate amount of discount and interest to be paid on the bonds shall not exceed the amount of interest that would have been payable on those bonds pursuant to the maturity schedule prescribed by the board of directors of the airport special district at the maximum rate provided in the bond resolution.
D. The proceeds of sales shall be deposited with the treasurer or with a trustee or agent designated by the board of directors of the airport special district to the credit of the airport special district to be withdrawn for the purposes provided by this article. Pending that use, the proceeds may be invested as determined by the airport special district.
48-6811. Bond validity
A. A bond that is issued pursuant to this article and that bears the signature of officers in office on the date the bond is signed is a valid and binding obligation, notwithstanding that before delivery of the bond any of the persons whose signatures appear on the bond have ceased to be officers of the Grand Canyon airport special district.
B. A member of the board of directors of the airport special district or an officer or employee of the airport special district is not personally liable on the bonds.
48-6812. Bonds; legal investments
Bonds and refunding bonds issued pursuant to this article are:
1. Securities in which all of the following may properly and legally invest:
(a) Public officers and bodies of this state and of political subdivisions of this state.
(b) Companies, associations and other persons carrying on an insurance business.
(c) Financial institutions, investment companies and other persons carrying on a banking business.
(d) Fiduciaries.
(e) Other persons who are authorized to invest in government obligations.
2. Securities that may be deposited with public officers or bodies of this state and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.
48-6813. Federal income tax considerations
The Grand Canyon airport special district may make any covenant, order any rebate, file any tax return, report any information and order the limitation on the yield of any investment made with the proceeds from the sale of its bonds or with taxes, revenues or other income pledged, held in trust or otherwise used to pay principal, interest and premium, if any, on its bonds in consideration for retaining the exclusion from gross income for federal income tax purposes of the interest income on any bond.
48-6814. Bonds proceeds; application
The Grand Canyon airport special district may apply the proceeds from the sale of its bonds to further any of its lawful purposes, including to pay:
1. Costs and estimated costs of the issuance of the bonds.
2. Costs of feasibility studies.
3. Engineering, inspection, fiscal and legal expenses.
4. Costs of interest estimated to accrue on money borrowed or that will be borrowed as the board of directors may determine.
5. Reserve funds, including those for debt service and working capital.
6. Costs and fees related to credit enhancement.
7. Costs of the services of agents, consultants or experts retained or employed in planning, preparing, supervising, financing and completing the undertaking.
Sec.|9. Transfer of powers, property and personnel
A. All matters, including contracts, orders and judicial or quasi‑judicial actions, whether completed or pending of the department of transportation relating to the Grand Canyon national park airport are transferred on October 1, 2010 and maintain the same status with the Grand Canyon airport special district.
B. All personnel, property and records and all data of the department of transportation relating to the Grand Canyon national park airport are transferred to the Grand Canyon airport special district and may be used for the purposes of this act.
Sec.|10. Effective date
This act is effective from and after September 30, 2010.
