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<ns0:Id>20250SB__066197AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-07</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-05-29</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
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<ns0:MeasureNum>661</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Hurtado</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Hurtado</ns0:Name>
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<ns0:Title>An act to add Section 21689 to the Public Utilities Code, and to add Section 7102.3 to the Revenue and Taxation Code, relating to airports, and making an appropriation therefor.</ns0:Title>
<ns0:RelatingClause>airports, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Airports: financial assistance.</ns0:Subject>
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<ns0:DigestText>
<html:p>The State Aeronautics Act establishes the Aeronautics Account in the State Transportation Fund, and continuously appropriates the moneys in the account for expenditure for airport purposes by the Division of Aeronautics within the Department of Transportation and the California Transportation Commission.</html:p>
<html:p>This bill would require 50% of the revenues from the imposition of state sales and use taxes, at the rate of 3.9375%, on the sale, storage, use, or other consumption of
jet fuel to be transferred to the Aeronautics Account for allocation in specified percentages to qualifying general aviation airports, to commercial airports, and for other aviation-related purposes, as specified. The bill would require the remaining 50% of those revenues to be retained by the airport at which the jet fuel is sold and used only for purposes related to airport operations, capital improvements, maintenance, and other aviation-related infrastructure needs, as specified.</html:p>
<html:p>By increasing the sources of funding for and expanding the purposes for which money may be used from a continuously appropriated fund, the Aeronautics Account, the bill would make an appropriation.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The City of Bakersfield is one of the fastest growing metropolitan areas in California, with a population exceeding 400,000 people, and serves as the hub of the County of Kern, an economic powerhouse driven by the agriculture, energy, logistics, and health care industries.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Enhanced air transportation services, both public and private, are critical to supporting economic development in the County of Kern by improving connectivity for residents, businesses, and visitors.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The availability of increased flights to the County of Kern will create significant opportunities for local job creation, particularly in industries such as:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Aviation and airport operations, including roles in ground services, maintenance, and customer support.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Hospitality and tourism, as better connectivity attracts conferences, business travel, and leisure visitors to the region.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Logistics and supply chain management, which rely on efficient air cargo services to support local businesses and industries.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Construction and infrastructure development, as investments are made in
airport facilities and surrounding areas.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Job creation in the County of Kern is especially critical for addressing the unique challenges faced by the county, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Higher than average unemployment rates in comparison to the state average.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Economic disparities in rural and underserved communities that would benefit from increased connectivity to statewide and national opportunities.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The need to diversify the economy and provide stable employment opportunities outside of traditional industries such as oil and gas.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Expanding flight
access to the County of Kern will strengthen the region’s competitiveness by attracting new businesses and investment, fostering innovation, and encouraging young professionals to stay in the area rather than seeking opportunities elsewhere.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Improved connectivity also directly supports key industries in the County of Kern, such as agriculture and energy, by providing quicker and more efficient access to clients, suppliers, and markets throughout California, the nation, and the world.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
As California continues to emphasize equitable economic development, regional air transportation access should align with the needs of underserved and emerging areas, such as the County of Kern,
to ensure statewide economic resiliency and inclusivity.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is the intent of the Legislature that this legislation does all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Facilitates increased public and private investments to expand the number of flights to and from the County of Kern, including domestic and international routes, to better serve the region’s growing population and economic potential.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Encourages partnerships among local governments, the aviation industry, and private stakeholders to improve infrastructure at the Meadows Field Airport, near the City of Bakersfield in the County of Kern, and other related facilities, ensuring the region is well-equipped to support increased flight capacity.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Explores incentives and grants to attract airlines to add new routes or increase frequency of existing flights to the County of Kern, particularly targeting underserved or high-demand routes.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Prioritizes the creation of local, high-quality jobs in aviation, airport operations, hospitality, and associated industries as part of any expansion plan, ensuring that the economic benefits directly support residents of the County of Kern.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Promotes economic development through enhanced air connectivity, including attracting conferences, trade shows, and other large-scale events to the region.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Recognizes the importance of air travel as a means to improve access
to health care, education, and business opportunities for residents of the County of Kern, especially for rural and underserved communities.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Establishes a statewide task force or advisory committee to identify and address barriers to expanding air transportation in the County of Kern, with an emphasis on ensuring that such expansion benefits local businesses, residents, and underserved communities.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Evaluates and mitigates potential environmental impacts associated with increased air travel to ensure alignment with California’s sustainability and climate goals.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 21689 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_74597BD6-B156-49DC-ACB5-366290D2E3D9">
<ns0:Num>21689.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding the provisions of this article, 50 percent of the revenue collected from taxes on jet fuel sold at an airport in the state shall be retained by the airport at which the jet fuel is sold and shall be used only for purposes related to airport operations, capital improvements, maintenance, and other aviation-related infrastructure needs as determined by the airport’s governing authority, consistent with applicable federal and state regulations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Fifty percent of the revenue collected from taxes on jet fuel sold at airports in the state shall be deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.3 of the Revenue and Taxation Code and allocated pursuant to subdivision (b).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding the provisions of this article, from the funds deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.3 of the Revenue and Taxation Code, the Division of Aeronautics shall allocate annually to eligible recipients the following percentages of available funds for airports and aviation-related purposes:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Twenty
percent for qualifying general aviation airports, to be credited to individual airport subaccounts in a manner consistent with the process established in Section 21682.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Forty percent to be divided among large, medium, and small hub commercial airports and nonhub commercial airports, each as defined by the Federal Aviation Administration under Section 47102 of Title 49 of the United States Code, in the following percentages:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Thirty
percent for large hub commercial airports.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Twenty percent for medium hub commercial airports.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Twenty percent for small hub commercial airports.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Thirty percent for nonhub commercial airports.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Fifteen percent for grants to be made available to nonhub commercial airports with less than 300,000 enplanements annually to attract, establish, and expand air service through incentives, marketing, passenger studies, route analysis, and the acquisition of consultants.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Expenditures under subparagraph (A) shall be consistent with the Federal Register, Volume 64, Number 30, on February 16, 1999.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Five percent to provide grants for aviation education that includes, but is not limited to, programs, projects, or initiatives that improve or enrich aviation within the California aviation community. Grants may include, but are not limited to, scholarships for flight training and aviation-related degrees from accredited universities.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Priority for grants provided pursuant to subparagraph (A) shall be given to underrepresented students, women, veterans, and persons of low income.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Fifteen
percent for other state aviation programs and aviation-related purposes as authorized pursuant to this article.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Not more than 5 percent for the division’s administrative costs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
<html:span class="EnSpace"/>
Any unused funds under subparagraph (A) shall be allocated pursuant to paragraphs (1) to (5), inclusive, on a pro rata basis.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Sections 21686 to 21688, inclusive, shall apply to allocations of funds pursuant to this section.
</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 7102.3 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>7102.3.</ns0:Num>
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<html:p>Notwithstanding Section 7102, revenues in the fund, less refunds, derived under this part from the imposition of state sales and use taxes pursuant to Sections 6051, 6051.3, 6201, and 6201.3, at the rate of 3.9375 percent, with respect to the sale, storage, use, or other consumption of
jet fuel shall be transferred to the Aeronautics Account in the State Transportation Fund for allocation to airports and aviation-related purposes in accordance with Section 21689 of the Public Utilities Code.</html:p>
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